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FOREWORD

I am delighted to present the 53rd Annual Report of CMA for the year 2013-14 which is in your hands
now. The Report is a comprehensive document and covers in detail, various aspects of performance of
the industry with particular reference to the year under report.
Year 2014 has been a very significant year for the cement industry inasmuch as it marks completion of
100 years of the journey of the Cement Industry through all its vicissitudes in the country to reach the
level of being the Second largest cement producer globally.
For the last two consecutive years, the overall economic growth registered a considerable reduction and
stood below 5%. This is also the lowest ever in the last decade after witnessing a growth of 6.5% in
2011-12 and 8.4% in 2010-11. This has created an environment of gloom among the industry as well as
the common man in the country.
Consequently, the cement industry, which has a direct co-relationship of 1:1.2 with the GDP, too
experienced demand recession. The growth of the cement industry during the year under review was
less than 3%, as per the official figures released by the Office of the Economic Adviser, DIPP. This has
sharply lowered the capacity utilization of the industry to 70% now from 94% in 2007-08. This saddled
the industry with an idle capacity of over 100 Mn.t. valuing a mammoth dead investment of over Rs.
70,000 crores at todays cost.
Apart from slowdown in the economy and deceleration in the construction activities, the cement
production also suffered on account of dwindling availability of coal, power and Rail wagons, in
addition to high taxation. These aspects are now briefly touched upon in the following paras.
Coal is one of the major raw materials needed by the Industry both in the manufacturing of cement and
also for generating power. Over the last couple of years, the Cement Industrys need has not been duly
addressed by the Govt. insofar as meeting its coal requirement is concerned due to diversion of Coal to
the Power Sector. From a fulfilment level of 69% of its coal requirement in 2003, the satisfaction level
for the Cement Industry has touched at 31% during the year under review. Since new linkages are not
being given to the existing units as well as to the new plants, cement industry perforce has to resort to
either open market purchase or imported coal at a much higher costs which also adds significantly to the
cost of production. Additional linkage to Cement Industry will bring down the cost of production.

Coal sector reforms is one of the top items on the agenda of the New Govt. It has taken steps to
formulate clear and transparent policies on allocation of critical natural resources such as coal, minerals
and spectrum.

It is to be hoped that while allocating the Coal resources in country, equitable

consideration is also accorded to non-power sectors, including Cement.


Another bottleneck pertains to Rail logistics. The cement industry continued to struggle hard in
transportation of cement, clinker, coal. fly ash, etc. by rail. The Rail share as a percentage of total
despatches of cement continued to remain at 34% of the total despatches of cement as opposed to 57% a
couple of years back. The major reasons for this decline are : (a) Inadequate and erratic supply of
wagons for cement, particularly during peak period. This badly affects the dispatch plans of the industry
(b) Acute crisis of wagons for movement of coal and pet-coke from Ports as also from SECL, which
have severely impacted the cement production (c) discriminatory freight hike around 47% since April
2011(e) abnormally high penalty, demurrage and wharfage charges (f) significant increase in carrying
capacity of wagons from 2200 t to 4000 t in last seven years, without any corresponding increase in free
time for loading/ unloading. Cement industry expects Railways to take speedy actions on the above
concerns to firm up the Rail share for cement.
Yet another major constraint for the cement industry is Power. To supplement its energy needs, the
Cement Industry has been making concerted efforts over the last few years to enhance the usage of
Alternate Fuels in place of fossil fuel-coal and Waste Heat Recovery (WHR) through Co-generation
after making huge investments in process technology, but the success rate is not encouraging due to
certain financial and also policy -related constraints being encountered by the industry. The usage of
AFR needs to be encouraged and incentivized and the WHR technology may be granted Renewable
Energy status for issuance of RE certificates.
The extant policy regarding supply of fly ash has been a matter of concern for the cement industry.
Power plants which were supplying fly ash to the cement industry free-of-cost as per the Govt.
notification have started charging considerably for fly ash from 2009. This has enhanced significantly
the production cost of Portland pozzolana cement. Cement industry has helped the power houses
considerably in saving their regular expenditure incurred on the disposal of the fly ash and also
investments having to be made on procuring land for its dumping. This has been made possible only
after setting up cement grinding units nearer the power houses entailing huge investments. Cement
industry deserves to be provided fly ash free-of-cost on the principle of Polluter to Pay basis, which
has been adopted the world-over, in the overall interest of the Nation and also from protecting the
environment and health-hazard concerns.

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High taxation is yet another major concern of the industry. Cement industry is taxed at 60% of the exfactory price, which is more than even the luxury items. Similarly, VAT Charged on Steel, a
construction material like cement, is only 4% whereas it is 12.5% on Cement/clinker which varies up to
15% in some states. There is an urgent need for at least 25% reduction in overall taxation from the
current level for helping the Core Sector Industry to contribute its best to the economy.
I am happy to mention that CMA continued its efforts to promote techno- economically superior cement
concrete roads, through meetings and vigorous follow-ups with a large number of Government officials
and concerned authorities both in the Centre and the States.
Realising the various inherent advantages and importance of cement roads for the rapid growth of the
economy, the new NDA Govt., under the able and dynamic leadership of Prime Minister, Shri Narendra
Modi has announced preference for the Cement Concrete Roads as default option in case of National
Highway Projects. It has also taken a number of bold policy measures to revive the sagging economy
and also drawn a Roadmap for the development of Expressways, Dedicated Freight Corridors, Rural and
Urban Roads, Airports, Port Connectivity, Development of 100 Smart Cities, Housing for all by 2022,
etc.
The results of the Govt.s initiatives have already started reflecting in the growth of the Cement Industry
to 7.9 % in the first three quarters of the current fiscal. To gain the momentum further in the growth rate,
Govt. must ensure fulfilment of its promises in respect of infrastructure development and also housing
projects by their timely clearances and execution, in addition to smooth and regular and flow of funds.
It is not out of place to mention that for the ambitious infrastructure programme of the Govt, there is
need to have in place short, medium and long-term projections of cement demand to enable the industry
to gear itself appropriately. However, after the June 2012 Order of the Competition Commission of
India, there has not been any detailed compilation of data, which was being effected by CMA on
regular basis earlier. There is, therefore, need to strengthen the process of effective data collection base
in the interest of both the Cement Industry and Govt.
Deptt. of Industrial Policy and Promotion, Ministry of Commerce and Industry, has been highly
supportive of our Industry for which, I am grateful to Secretary, Joint Secretary, Director and Under
Secretary. I am equally indebted to Secretary (Coal), Addl. Secretary (Coal) and Joint Secretary,
Ministry of Coal; Chairman, Railway Board, Member Traffic, Advisor (T), Executive Director Traffic
Transportation (S), Executive Director Traffic Transportation (R), Ministry of Railways;

iii

Secretary, MORTH, Chairman, NHAI, Secretary, Ministry of Environment and Forests; and Chairman,
Central Pollution Control Board, for their esteemed counsel, continued assistance and steady support. I
also thank the Senior Officers of various Ministries, Coal India, Singareni, CAPEXIL for their
cooperation.
I also wish to thank senior Members of the Managing Committee and various other CMA Committees
for their valuable advice whenever needed. But for their unstinted help and cooperation, it would not
have been easy for your Association to discharge its responsibilities as efficiently.
The officers and staff of CMA under the supervision and guidance of Secretary General, Shri N.A.
Viswanathan have turned in yet another year of dedicated and committed service in the interest of the
Association and its mission. I express my sincere appreciation and wish to record my gratitude to each
of them for their contribution through these trying times. I am sure, they will continue to provide such
service with zeal in future as well.

New Delhi
February 2015

(O.P. Puranmalka)
President

iv

53rd Annual Report

CEMENT MANUFACTURERS ASSOCIATION


53rd ANNUAL REPORT 2013-14
(Under Rule 49 Rules & Regulations of CMA)

The Managing Committee is happy to


present its 53rd Annual Report for the year
2013-14.

Office (CSO) data, industrial growth


dropped to 0.4% in 2013-14 as against 1%
in 2012-13. The industrial revival may be
longer and needs stronger initiatives of all
stakeholders to emulate the peak growth
achieved in the recent past.

THE YEAR AT A GLANCE


Economy

The last two years were particularly


disappointing for the manufacturing
sector, with growth averaging 0.2% per
annum. The growth in manufacturing
sector during 2013-14 was negative
(-0.7%) as compared to 1.1% in 2012-13.

After achieving unprecedented growth of


over 9% for three successive years
between 2005-06 and 2007-08 and
recovering swiftly from the global
financial crisis of 2008-09, the Indian
economy has been going through
challenging times.
Gross Domestic
Product (GDP) growth drifted down
continuously from 8.4% in 2010-11 to
6.5% in 2011-12 and to lower than 5% for
two consecutive years, i.e. 2012-13 and
2013-14. GDP growth in the year 2013-14
was 4.7% as against 4.5% in the previous
year. The two successive years of sub-5%
growth was witnessed for the first time in
25 years. A combination of factors which
has contributed to such a low growth
include persistent uncertainty in the
global outlook, caused by the crisis in the
Euro area and general slowdown in the
global
economy,
compounded
by
domestic structural constraints and
inflationary
pressures
and
cyclical
slowdown in both global and domestic
economies.

The growth on the Agricultural Sector was


4.7% in 2013-14 as against 1.4% in
2012-13.
The Construction Sector grew by 1.6% in
2013-14 as against 1.1% in 2012-13.
The Cement Sector plays a vital role in the
economic growth of the country and its
journey towards inclusive growth. Cement
is an essential item to the Construction
Sector and to all infrastructural projects.
The Construction Sector alone contributes
to over 7% of the countrys GDP.
There is change of Govt. in the Centre, for
the first time after decades, which an
overwhelming majority has mandated.
With this change, the Cement Industry
hopes that the economy will revive, as the
New Govt. has already announced bold
steps and measures. Further, there has
been optimism in the economy after the

The slow growth of the economy had


impacted various segments of the
Industry. As per the Central Statistics
1

10-point plan charted out by the Prime


Minister, which focuses on investments in
infrastructure, time-bound action and
improved coordination between the
Centre and States to ensure smooth
implementation of Government policies.
With these measures, the growth is surely
expected to pick up from the current year
onwards.

Year

Cement Prod.
(Mn.t.)

% Growth

2012-13

248.23

7.70

2013-14

255.57

2.96

In view of the downward revision of the


previous years production figures from
251.12 Mn.t. to 248.23 Mn.t. by the Govt.,
the percentage growth has gone down by
1.25 points from 8.95% to 7.7%. As per
the figures collected by CMA from
different sources, the growth in cement
production in previous year was 1.48%,
thus showing a high variance in the
growth rates in two sets of data.

Cement Industrys Performance


The Cement Industry witnessed slowdown
in cement demand in the year 2013-14
due to fall in construction activity,
prolonged monsoon, with floods and
cyclones that hit some parts of the
country,
financial
constraints
and
increasing rate of interest, and virtual
drop in Government spending which had
led to slowdown in realty and
infrastructure sectors.

Pan India cement production and capacity


are reflected in Annexure-I.
As reported last year, the flow of
statistical feedback to CMA practically
dried up consequent upon the Order
dated 20th June 2012 of Competition
Commission of India (CCI) in Case No.
29/2010 Builders Association of India Vs.
CMA & Ors.. In the absence of inflow of
statistical data, CMA could not compile
and incorporate the performance of
Cement Industry in the Annual Report.

During the year 2013-14, cement


production, as per the Office of the
Economic
Advisor,
Department
of
Industrial Policy & Promotion (DIPP), was
255.57 Mn.t. as against 248.23 Mn.t. in
the previous fiscal, registering a growth of
2.96% as against 7.7% in the previous year
2012-13. New capacities in the pipeline
materialized and lack of demand resulted
in further decline of capacity utilization of
the Cement Industry. Cement is one of
the core industries and an important
contributor in infrastructure growth.
Cement has a direct co-relation of 1:1.2
with the GDP. But, it has witnessed lower
growth than GDP (<3% as against GDP
growth of sub-5%).

Inadequate and incorrect data on the


Cement Industry has been hampering
planning for Cement Industry and it will
continue to suffer unless a strong
database is created, particularly when
there is a wide mismatch of demand and
capacity in the Cement Industry. There is,
therefore, need to strengthen the system
of collection and compilation of the
database on Cement Industry since a
reliable and authentic database forms the
very basis of future planning of the
Cement Industry.
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53rd Annual Report

These measures are likely to generate


considerable cement demand, which is
much needed to bring back Indian
Cement Industry on the growth
trajectory.

Cement Industrys Outlook


(2014-15)
As per the Economic Survey 2013-14, GDP
growth is expected to be 5.4% 5.9% in
2014-15, and will increase gradually
thereafter.

MEETINGS OF THE MANAGING


COMMITTEE

The capacity utilization in the Cement


Industry was 94% in 2007-08 which has
been declining since then to around 70%
mainly due to mismatch between the
supply and cement demand. This has
created a situation of excess
idle capacity of over 100 Mn.t.,
a dead investment to the
magnitude of Rs.62,500 crores
in cost. The Cement Industry
is optimistic that the thrust
and importance given in the
Union Budget 2014-15 for the
development
of
National
Highways, Rural and Urban
Roads, Affordable Housing,
Port
Connectivity,
Development of 100 Smart
Cities, etc. should help in
boosting the muted growth of
the Cement Industry.
The Govt. has finally realized
the value of concrete roads
over bitumen. Shri Nitin
Gadkari, Honble Minister of
Road Transport, Highways and
Shipping, has unequivocally
expressed his preference for
cement concrete over bitumen
for road construction.

Three meetings of the Managing


Committee of CMA were held during
201314 to review and deliberate on the
issues relating to the problems and
growth of the Cement Industry.

CMA Managing Committee Meeting in progress

CMA Managing Committee Meeting - 9th January 2014


Seated on Dais (L-R) S/Shri B.L. Jain, Past President, CMA; O.P. Puranmalka,
President, CMA; M.A.M.R. Muthiah, Past President, CMA;
N.A. Viswanathan, Secretary General, CMA; Dr. S. Chouksey, Vice President,
CMA and Mrs. Vinita Singhania, Past President, CMA

CMA COMMITTEES

supply of coal; Delay in obtaining


clearances from Ministry of Environment,
Forests & Climate Change (MoEF&CC),
Ministry
of
Mines,
etc.
thereby
discouraging fresh investments in this
core sector industry; High
taxation
burden on this industry; Steep hike on the
railway freight, Inability of CMA to collect
and furnish data to the Ministry, in the
wake of CCIs Order dated 20th June 2012,
etc.

Shri O.P. Puranmalka, President, CMA has


re-constituted
the
following
CMA
Committees for the year 2013-14 to
render assistance to the Management of
the Association to address various
emerging issues and problems, having
bearing on the Cement Industry.
 CMA Committee on Coal Matters.
 CMA Technical Committee.
 Energy Task Force.

The Minister, who gave a patient hearing

 Environmental Task Force.


 CMA
Finance/
Committee.

Legal

to the representatives of the Cement

Matters

Industry was positive in the discussions.

 CMA Committee on Railway Matters.

CEMENT INDUSTRYS PRE-BUDGET


MEMORANDUM 2014-15

Names of the Chairmen/Co-chairmen of


the above Committees are indicated in
Annexure-II.

CMA, on behalf of the Member Cement


Companies submitted its Pre-Budget
Memorandum for the year 2014-15 on
2nd June 2014, to the Honble Finance
Minister, Shri Arun Jaitley, Government of
India.
Conveying
its
hearty
congratulations to the Finance Minister
and the newly formed Government under
the dynamic leadership of Shri Narendra
Modi, Honble Prime Minister, the
Cement Industry expressed confidence
that the new dispensation with its focus
on infrastructure development and job
creation would initiate bold and decisive
Policy Reforms to promote economic
growth,
restore
the
much-needed
investor confidence, attract higher

MEETING WITH HONBLE MINISTER OF


STATE FOR COMMERCE AND INDUSTRY
Shri E.M. Sudersana Natchiappan, the
then Hon'ble Minister of State for
Commerce & Industry, called a meeting
with the representatives of the Cement
Industry on 4th September, 2013 to
understand the major concerns of the
Cement Industry impacting its growth.
Shri N.A. Viswanathan, Secretary General,
CMA brought to the notice of Hon'ble
Minister the major concerns affecting the
Cement Industry, notably Current poor
utilization of cement capacity; Inadequate

53rd Annual Report

investments and generate employment


opportunities,
especially
in
the
manufacturing sector.

cement

Cement is as

activities as steel but both products are


treated differently when it comes to
taxation. Cement, a high volume low
than the luxury items at 60% of ex-factory
price. It was mentioned that average tax
on cement in the Asia Pacific Region is just
11.4% with the highest levy of 20% being
in Sri Lanka. CMA urged that the taxation
burden on the cement needs to be
lowered by at least 20% to 25% from the
present level of 60% ex-factory price in
the overall interest and growth of both
economy,

which

are

currently passing through a very bad


phase.
Excise

Duty

Rationalization

and

Simplification: Excise duty on Cement is


levied @12% + Rs.120 per MT. Duty rates
are one of the highest and next only to
luxury

goods

like

cars.

Other

quite

Increase of abatement percentage: Excise


duty on Cement is levied on transaction
value. As per Section 4 of Central Excise
Act, Maximum Retail Price (MRP) is
considered as transaction value if printed
on bags. Since MRP consist of excise duty,
VAT, freight component, post sales
expenses and discount etc. MRP works
out very high as compared to transaction
value. Moreover, in the Cement Industry,
billing is done at a higher price and
subsequently, credit note is issued for all
types of discounts/incentives viz. Rate
difference, Cash discounts, and annual
incentives etc., which ultimately result in
reduction of net realization of the
company whereas excise duty is paid at a
higher value which is 70% of MRP. CMA,
therefore,
suggested
that
existing
abatement of 30% may be increased to
55%, as was also recommended by
NCAER.

value product, is highly taxed even more

and

become

CMA
urged
Government
for
rationalization and reduction of the Excise
Duty from the current 12% to 6-8%
without addition of Specific Duty to bring
it at par with other core and
infrastructure industries and simplifying
the duty structure either as specific rate
per MT or on advalorem basis and
without relating to MRP etc.

much an essential item for construction

industry

has

complicated in the last few years.

The important facts and suggestions of


CMAs Pre-Budget Memorandum are
highlighted hereunder:
Highly Taxed Industry:

clinker

core

industries such as coal, steel attract duty


at around 5%. Further, the excise duty
structure for both cement as well as

Levy of Customs Duty on Cement


Imports: Import of cement into India is
freely allowed without payment of basic
customs duty whereas all the major
inputs for manufacturing cement such as
Limestone, Gypsum, Pet coke, Packing
Bags etc. attract customs duty. In this
situation duty-free imports cause further
undue hardship to the Cement Industry
apart from the security concerns inherent
in the import of cement from Pakistan.
CMA requested that to provide a levelplaying field, basic customs duty be levied
on
cement
imports
into
India.
Alternatively, Import duties on goods
required for manufacture of cement be
abolished.

whereas on final product Cement there


is no Basic Customs Duty, leading to an
anomalous situation of Import Duty on
inputs being higher than a finished
product. CMA suggested that import
duty on pet coke, and other input
materials used in production of cement
be scrapped. This would remove the
aberration in the structure of duties
existing in cement imports vis--vis its
inputs.
Abolition of Import Duty on Tyre Chips:
The Cement Industry has been developing
usage of alternative energy sources like
tyre chips etc. However, tyre chips are
presently put under the Negative list of
imports, whereby the same cannot be
imported into India. In order to enhance
the usage of cut-tyres as fuel in the
manufacturing of cement, CMA suggested
that tyre chips be allowed to be imported
by removing it from the Negative list
and import duty on the same be reduced
to zero.

Customs Duty on Pet Coke & Other


Inputs: Cement Industry has been subject
to perennial shortages of coal, the main
fuel. Approximately 35% of linked coal is
received by the member companies
against their total fuel requirement for
kiln under the Coal Linkage Scheme. This
adversely impacts the Cement Industry.

Treatment of Waste Heat Recovery as


Renewable Energy Source: Cement
Industry has been putting up Waste Heat
Recovery plants with substantial capital
investments so as to derive more energy
from the same energy resource. In a way,
this is akin to Green Energy. To help the
industry and incentivize its endeavour to
produce more such environment-friendly

The Cement Industry has been resorting


to increased usage of Pet coke as fuel due
to reducing availability of coal. The
indigenous availability of Pet coke being
short, it is imported.
Pet coke is
expensive and the situation is further
compounded and skewed by the fact that
the import duty on Pet coke is 2.5%,

53rd Annual Report

energy, CMA requested that such energy


generation be treated as Renewable
Energy Source.

Reduction (CER) credits under Clean


Development Mechanism; Exemption to
Cement Industry U/S 80-1A; Exemption to
Power Plants U/S 80-IA; Cenvat Credit on

Amend First Proviso to Rule 4A of the


Service Tax Rules 1994 to include Indian
Railways: Government had withdrawn
the Service Tax exemption on Railway
Freight w.e.f. 1.10.2012 and the Service
Tax is being charged by the Railways on
railway receipts. Since different Railway
Zones are issuing certificates in different
formats and in most cases without any
serial number, credit is being disallowed
by Central Excise officers to the cement
companies. This credit amount run into a
few hundred crores of Rupees.
To
overcome this problem, CMA suggested
amending the First Proviso to Rule 4A of
the Service Tax Rules, which entitles
Cenvat
Credit
on
bank
certificates/account statements without
serial numbers, to include certificates
issued by Indian Railways.

Capital goods used outside factory for


handling of Raw Material in relation to
manufacture

of

final

product;

Re-

classifying Capital goods having useful life


of less than a year as Inputs; liability of
VAT

as well

movement

as CST
of

on inter-state

material

besides

suggestions regarding Direct Taxes; issues


relating to Tax Administration,

policy

matters etc.

Union Budget 2014-15


Honble
Jaitley,

Finance

Minister,

Shri

presented the Union

Arun
Budget

2014-15 in the Parliament on 10th July


2014.
So far as Cement Industry is concerned,
while the Govt.s announcements and
considerable funds allocation for the

Your Managing Committee is happy to


report that this request of CMA has, since
been accepted by the Govt. vide their
Notification No.26/2014-Central Excise
(NT) dated 27th August 2014.

various

infrastructure

development

projects in the country would revive the


cement demand, the imposition of Basic
Customs Duty (BCD) and Countervailing
Duty (CVD) on Coal and doubling the

Other Issues

Clean Energy Cess will further enhance

The other issues, inter-alia, included

the financial burden of the Cement

Classifying Cement as Declared Goods;

Industry, which has already been passing

Tax exemption to Certified Emission

through a bad phase.

MAJOR HIGHLIGHTS OF UNION BUDGET 2014-15


CONCERNING THE CEMENT INDUSTRY

Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5% basic
customs duty and 2% CVD to eliminate all assessment disputes and transaction costs
associated with testing of various parameters of coal.

Clean Energy Cess increased from Rs.50 per tonne to Rs.100 per tonne, to finance Clean
Environment initiatives.

Concessional basic customs duty of 5% extended to machinery and equipment required for
setting up of a project for solar energy production.

Investment allowance at the rate of 15% to a manufacturing company that invests more than
Rs.25 crore in any year in new plant and machinery. The benefit to be available for three
years i.e. for investments up to 31.03.2017.

10 year tax holiday extended to the undertakings which begin generation, distribution and
transmission of power by 31.03.2017.

Export duty on bauxite increased from 10% to 20%.

Customs and Central Excise Acts to be amended to expedite the process of disposal of
appeals.

A sum of Rs.4000 crores for National Housing Bank from the priority sector lending shortfall
with a view to increase the flow of cheaper credit for affordable housing to the urban
poor/EWS/LIG segment is provided.

An investment of Rs.37,880 crores in NHAI for construction of 8500 kms NH and State Roads
proposed which includes Rs.3000 crores for the North East.

Rs.1000 crore provided for Pradhan Mantri Krishi Sinchayee Yojana for assured irrigation.

Rs.14,389 crore provided for Pradhan Mantri Gram Sadak Yojana (PMGSY).

Allocation for National Housing Bank increased to Rs.8000 crore to support Rural housing.

A sum of Rs.7060 crore provided in the current fiscal for the project of developing
100 Smart Cities.

Work on select Expressways in parallel to the development of the Industrial Corridors will be
initiated. For project preparation NHAI shall set aside a sum of Rs.500 crore.

Perspective plan for the Bengaluru - Mumbai Economic Corridor (BMEC) and Vizag-Chennai
Corridor to be completed with the provision for 20 new Industrial Clusters.

Master planning of 3 new Smart Cities in the Chennai-Bengaluru Industrial Corridor region,
viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be
completed.

Scheme for development of new Airports in Tier-I and Tier-II Cities to be launched.

Slum development to be included in the list of Corporate Social Responsibility (CSR) activities
to encourage the private sector to contribute more.

Rs.100 crore allocated for a new scheme Ultra-Modern Super Critical Coal Based Thermal
Power Technology.

53rd Annual Report

CMA AT PCA, WASHINGTON BOARDS


MEET

three sectors account for roughly 50% of


the cost of cement. Both the availability
and the cost of these inputs have a vital
bearing on the fortunes of the cement
players.

Mr. Gregory M. Scott, President and Chief


Executive Officer of the Portland Cement
Association, Washington invited CMAs
Vice President, Dr. S. Chouksey to speak
at PCA Spring Board Meeting on 29th
April, 2014 at The Willard, Washington,
DC.

All these sectors are largely in Govt.


domain,
and,
historically
Cement
companies have had virtually no control
on their cost and availability.

Dr. Chouksey actively participated in their


Boards meeting and also made a
Presentation on the Challenges and
Opportunities being faced by the Indian
Cement Industry.
He had intense
interaction with office bearers of PCA
regulating their ways of tackling the
problems being faced by their cement
plants particularly when confronted with
glut situation of cement a few decades
back.

COAL
Coal is vital to the Cement Industry as it is
the primary fuel and accounts for 25-30%
of the total cost of cement production. It
takes about 170 kg of coal to produce one
tonne of clinker.
During the year 2013-14, CMA Committee
on Coal Matters held periodic meetings
and also interacted with various
Government Authorities on coal-related
issues.
Also valued opinion and
suggestions were sought from the
Members on regular basis on specific
issues and problems as they arose before
firming up our Associations views to take
up with the concerned authorities for
their resolution.

Dr. Chouksey also responded to various


questions raised by their Board of
Directors on the Indian Cement Industry.
Dr. Choukseys presentation in the
meeting was received with appreciation
by the PCA Members.

INFRASTRUCTURE

Revival of Standing Linkage Committee


(Long-Term) after 6 years

All over the world, Cement is one of the


most important building materials for any
construction and
is an essential
infrastructure input. The performance of
the Cement Industry itself depends
critically on regular and consistent supply
of Coal, Power and availability of Rail
transportation. The inputs from these

Ministry of Coal (MOC), after repeated


persuasion called Standing Linkage
Committee (Long Term) Meeting for
Power, Sponge Iron and Cement Sector to
review the status of existing Coal Linkage
and other related matters on 20th
December 2013, 21st February 2014,
9

27th June 2014, 11th August 2014 and 3rd


December 2014 under the Chairmanship
of Additional Secretary, MOC. As per the
directives given in the first SLC (LT)
meeting, a Committee was constituted to
settle the long pending issue of signing of
Fuel Supply Agreements (FSAs) against
the linkages granted in the year 2007.

(b) Grant of further 3 months time from


the date of issuance of letters to
respective LOA holders by SECL for
achievement of deficient milestones
and/or
submission
of
fresh/
additional documents/ clarification as
being recommended.
(c)

Background
For Cement Sector, 43 Letters of
Assurance (LoAs) were issued by the Coal
Companies. Out of these, 21 FSAs were
signed and Commitment Guarantee
forfeited in 2 LoAs cases. Of the balance
20 Cement Plants, 16 plants belong to our
Members, where milestones were verified
by the South Eastern Coalfields Limited
(SECL) and found deficient/not achieved
within LOA validity,
Notices for
cancellation of LoAs and forfeiture of
Commitment
Guarantee/
Additional
Commitment Guarantee have been issued
in the last financial year (2012-13).
The Review Committee constituted in
SECL recommended the following broad
principles for resolving the pending issues
and placed before the meeting of SLC (LT)
held on 27th June 2014 under the
Chairmanship of Additional Secretary,
MOC, to take a view in the matter:

As coal is used for manufacture of


clinker, entitled coal quantities under
various LOAs will be worked out
considering total clinker capacity of
the plant (including pre-existing +
enhanced capacities). Based on this
capacity, the eligible quantity will be
at the rate of 17% of the clinker
capacity as normative quantity. Total
eligible quantity will then be 75% of
this normative quantity as per New
Coal Distribution Policy (NCDP). From
this total eligible quantity, the
quantity being already drawn under
FSA from SECL, if any, will be
subtracted to arrive at the balance
eligible quantity for supply under
fresh FSAs against these LOAs,
subject to the ceiling of approved
LOA quantities.
In case of variation in clinker
capacities as per different documents
submitted against various milestones
of an LOA, the lowest capacity will be
considered for computation of
entitled
coal
quantity.
These
principles will apply uniformly to all
LOA holders, to which they have
agreed.

(a) Condonation of delay in respect of


achievement of milestones and / or
submission
of
documents/
clarifications in respect of milestones
already achieved and documents
already submitted till date.

10

53rd Annual Report

Iron, under reference No. 23011/39/2008CPD dated 26th February 2010. These
Guidelines were applied prospectively and
in accordance with the terms and
conditions mentioned in these Guidelines.

(d) In cases, where the clinker capacity is


mentioned in Tonnes Per Day (TPD),
the annual capacity will be uniformly
calculated considering 330 working
days in a year as per industry norms
as indicated by DIPP.

Cement Projects with Captive Mines have


been given Tapering Linkages with the
stipulation that on the coal supply after
the normative date of production,
additional 40% of the base price shall be
payable as Add-on-Price for all coals of
Gross Calorific Value (GCV) of 5800
Kcal/Kg and below as against 20% for the
Power Plants which was revised with
effect from 16.12.2013. The coal supplies
will be for a maximum period of three
years in a tapered manner corresponding
to 75% in the first year, 50% in the second
year and 25% in the third year from the
date of targeted normative production.

(e) Manufacturing of clinker has distinct


pollution control norms. Most of the
LOA
holders
have
furnished
Environment Clearance for clinker.
Environment Clearance for clinker
will be mandatory in all cases.
However, LOA holders may furnish
either Consent to Establish or
Consent to Operate mentioning
clinker capacity, which will be
acceptable for milestone purpose.
The papers/documents of each of the 20
cement plants were examined by SECL in
light of these broad principles and
decision on each individual case taken by
SECL. Relaxation or extension of time till
31.10.2014 for meeting procedural
formalities and the achievement of
milestones, wherever required, was given.

Cement Companies which have been


allocated Captive Coal Blocks could not
start coal production due to a variety of
reasons beyond their control, such as,
delays/non-clearance in getting MoEF&CC
clearance; delays in demarcation of the
boundaries by the Central Mine Planning
and Design Institute Limited (CMPDIL);
enquiry initiated against the other
allocatee of the same Coal block, delay in
granting land and other clearances etc. by
State Govts.

With this development, most of the FSAs


are already signed and remaining 3 FSAs
are expected to be signed after
submission of MoEF&CC document for
enhanced clinker capacity.

Supply of coal to Cement Plants with


tapering linkages
MOC notified the Guidelines/ Policy
relating to issuance of LOA/Allocation of
Coal on tapering basis to various
consumers of Power, Cement & Sponge

In case of Thermal Power Plants with


tapering linkages coal supply were
extended by 3 years or till such time the
11

production actually starts from the coal


blocks, whichever was earlier, after the
normative date of production and
directions to that effect were given to the
Chairman & Managing Director, Coal India
Limited (CIL) by MOC on 16th January
2014.

Based on the presentation by the CMA

In order to maintain parity with the relief

blocks:

and other Stakeholders, the Standing


Linkage Committee (Long-Term) in its
meeting held on 3rd December 2014
decided that coal be supplied by road to
the End-use-plants in the following order
in case of de-allocated/cancelled coal

granted to the Power Plants for supply of

(a) End-use-plants which were already


having linkages/LOAs but whose
existing linkages were converted to
tapering linkage consequent upon
allocation of coal block.

coal with tapering linkages, CMA took up


the issue with Secretary (DIPP), Ministry
of Commerce & Industry, Secretary, MOC
& Cabinet Secretary for extending the
Normative date of commencement of

(b) End-use-plants which were granted


tapering linkages in view of coal
blocks having been allocated to them.

Production to the Cement Projects also


for continued coal supplies on long term
linkages. CMAs suggestions in this regard
have been accepted in the Fifth Meeting

Third Party Joint Sampling Facility for


Cement Industry

of the Inter-Ministerial Committee held


on 11th June 2014. This will help in

The mechanism of Third Party Sampling of


coal has been put in place with effect
from 1st October 2013 for the power
utilities and for the other consumers
having Annual Contracted Quantity (ACQ)
more than 4 lakh tonnes. CIL has even
modified its FSAs to allow Third Party to
collect samples at the delivery point for
determining the quality of coal. The
samples of coal will be collected in the
presence of representatives of the seller
and the purchaser.

ensuring supply of coal to Sponge Iron


Plants and Cement Plants, which have not
been granted any fresh coal linkages since
2007. The CPPs have been excluded from
this arrangement.
Consequent on the de-allocation of the
coal blocks by the Honble Supreme Court
of India in September 2014, CMA has
urged the Government to scrap the
Tapering Coal Linkage Policy 2010 and
requested to release the difference
between the normal and tapered quantity
of coal to the affected member units from
retrospective effect.

Member Cement Companies have been


consistently expressing serious concern
about the poor quality of coal being
supplied by the coal companies (CIL as
12

53rd Annual Report

also by Singareni Colliery Co. Ltd.) and the


extensive variation in the declared GCV
and the actual GCV measured at the
cement plant as also the sub-standard
quality of coal.

Tokisud-II and one in West Bengal, Andal


Babuisol, which were to be auctioned to
the Steel, Sponge iron and Cement
companies. These three coal blocks have
reserves (including proved, indicated and
inferred) of about 499.4 Mn.t.

CMA has, therefore, requested the


authorities to extend the proposed facility
of engagement of independent third Party
Sampling Agency for sampling and
analysis of coal for cement sector
consumers as well, subject to their option
for such facility, without any embargo on
the minimum quantity of 4 lakh tonnes.

Tokisud-II coal block, earmarked for


Cement sector and situated in the South
Karanpura coalfield of Jharkhand has
127.692 Mn.t. of net proved geological
coal reserves. However, the assessed
Mineable/Extractable reserves are only
35.25 Mn.t. as per the information
obtained from CMPDIL. The average coal
quality range indicated is 4901-5200, GCV
per K.cal/per kilogram or Useful Heat
Value (UHV) between 3360-4200 UHV
K.Cal/per kg. or equivalent to erstwhile
E grade coal.

Coal Blocks for Cement Industry through


auction by competitive bidding for
specified end uses
CMA and the Cement Industry had taken
up with the MOC, DIPP, Ministry of
Commerce and Industry, regularly, for
specifically setting aside Coal blocks for
allocation to Cement Industry. MOC vide
O.M. No. 13016/26/2004-CA-I (Pt.)-CA- III
dated 29th January 2014, notified
Allocation of Area containing coal through
auction by competitive bidding (Rule 3)
under Auction by Competitive Bidding of
Coal Mines Rules, 2012, wherein,
information about capacity of the EndUse plant along with Capital Investment
required was sought in a format from the
Cement
Companies
through
DIPP,
Ministry of Commerce & Industry.

The Request for Proposal Documents


(RFP) for the coal block was available with
effect from 26.2.2014 upon payment of
Rs.2,00,000/- and bidding closed on 25th
June 2014.
However, the first-ever auction of captive
coal mining assets turned out to be a
failure. The Coal Ministry did not receive
any bid for two of the three mines
auctioned to steel and cement companies
though over 40 firms purchased bid
documents in March, 2014. Only two
sponge iron companies had submitted
bids for the small Andal Babuisol asset.
The underground reserve can produce
about 0.70 Mn.t. of coal annually for 25
years.

MOC for the first time set three Coal


Blocks for auction by competitive bidding
for specified end uses, two coal blocks in
Jharkhand,
Jhirki & Jhirki (West),
13

All the blocks have land-related issues.


The bidders were expected to make an
up-front payment of Rs. 35-45 crore, over
and above the production sharing
contract. MOCs decision that the blocks
should be auctioned only after securing
the necessary environmental and landrelated clearances may see the auction
process put on hold as the process of
granting clearances take months together
and sometimes even years.

CMA had taken up strongly with the


Government for the resolution of the
consequences arising due to de-allocation
of these Coal Blocks.
The Government has now decided to sell
101 coal blocks by the end of March 31,
2015, while the remaining 103 blocks will
be auctioned in the Fiscal Year 2015-16.
Of the 101 blocks to be auctioned before
Fiscal Year 2014-15, 65 blocks would be
auctioned while 36 blocks would be
directly allotted to the State-owned
companies - 63 to power sector and rest
to non-power sectors.

The Government is now overhauling coal


blocks
bidding
policy
to
attract
investments as the pilot set of auctioned
mines could not find any takers.

Fuel Consumption and Coal Receipt against


FSA/Linkage

De-allocation of Captive Coal Blocks


The Honble Supreme Court of India, in its
Judgement dated 25.08.2014 and Order
dated 24.09.2014 passed in Writ Petition
(CRL No. 120 of 2012) declared allocation
of 218 Coal Blocks as arbitrary & illegal.
The Honble Supreme Court quashed the
allocation of 204 Coal Blocks
barring 14 allocated to Ultra
Mega Power Projects and blocks
in operation of NTPC and SAIL.

Coal receipt against FSA/Linkage by


Member Units of CMA was 9.22 Mn.t. in
2013-14 as against 10.38 Mn.t. in
2012-13. Month-wise coal receipts for the
years 2009-10 to 2013-14 are given in
Annexure-III.

Out of these Coal Blocks,


seventeen Coal Blocks relate to
the Cement Industry, and 12 to
our
Member
Cement
Companies
wherein
huge
investments have been made by
the Industry in the End-Use
plants and the Coal Blocks.

14

53rd Annual Report

The total fuel procurement by Member


units was 29.93 Mn.t. in 2013-14 as
against 29.82 Mn.t. in 2012-13. While
the total fuel consumption by Member
units, during the year 2013-14 was 28.85
Mn.t. as against 27.37 Mn.t in 2012-13.

The Cement Industry, because of shortage

E-Auction/Open Market Procurement of


Coal

during 2012-13.

of coal, is required to buy considerable


quantities of coal from Open Market/EAuction.

A total of 3.92 Mn.t. of E-

Auction/Open Market Coal was purchased


during 2013-14 as against 3.93 Mn.t.

The
Coal distribution through E-Auction was
re-introduced
in
the New
Coal
Distribution Policy in 2007 mainly to
provide access to companies that do not
have regular sources of supply. Most of
the coal through E-Auction is transported
through road network. In a recent order
by MOC, to boost supplies to the Power
Sector and to sign FSAs with power
companies and not to increase supplies to
other sectors, it has directed curtailing
E-Auction
sales
by
50%
to
accommodate power producers.

percentage

increase

of

E-Auction bidding price over notified coal


price from CIL sources with respect to the
Spot E-Auction was 38% and Forward
E-Auction was 40% during the year under
review,

as

against

50%

and

26%

respectively during the financial year


2012-13. The decreasing trend in the Spot
E-Auction price is due to increase in the
Notified Price and decline in the imported
coal price. Although there is increase in
the Forward E-Auction price but its
quantity is only 6% of the total quantity
allocated through E-Auction.

CMA has requested the Government to


revisit its directive of reducing the
quantity of coal offered through E-Auction
route by 50% and to regulate
registration/participation of the Traders,
Power Utilities and Independent Power
Producers. Pending decision, Power
Utilities, IPPs and Coal Traders may be
restrained from participating in the Spot
and forward E-Auction.

Details of year-wise procurement and


consumption of fuel, including Captive
Power Plants, are given in Annexure-IV.
It will be seen therefrom that during the
year 2013-14, linked coal share dropped
to 31% of the total receipt as against 69%
in 2002-03.

15

Coal Imports
The coal imported by Member
units was 9.08 Mn.t. during
2013-14 as against 9.27 Mn.t.
during 2012-13.

Pet Coke
During the year under review, the
Cement Industry consumed 5.96
Mn.t. of pet coke as against 5.18
Mn.t. during 2012-13.

Lignite
Govt. The suggestions included incentives
for cement plants using higher percentage
of AFR, capital subsidy for investments in
pre-processing and co-processing of
waste, fine tuning of the classification of
hazardous/non-hazardous waste, granting
approval for usage of same alternate fuels
in different plants, one time NOC for
inter-state boundary movement of
hazardous waste, etc., besides creation of
a separate R&D Cell for classification and
utilization of waste.

A quantity of about 1.11 Mn.t. of


Lignite was used in the financial year
2013-14 as fuel mainly in the cement
plants of Southern and Western Regions
as against 0.71 Mn.t. during 2012-13.

Other Fuels
Other
alternative
fuels
like
husk/municipal wastes/biomass, etc.
consumed by CMA Member Companies
was 0.64 Mn.t. in 2013-14 as against 0.35
Mn.t. in 2012-13.
CMA continues its efforts to reach out of
the authorities to enhance Alternate Fuels
and Raw Materials (AFRs).

Subsequently, in March 2014, DIPP sought


suggestions on Action Plan to be
implemented by the DIPP on usage of
Alternate Fuels and other related issues
for overall improvement in cement sector.
CMA in its response dated 2nd April 2014
highlighted the uniqueness of cement
manufacturing process requiring high
temperature, suggested that it offers
perhaps the best way to consume both
hazardous as well as non-hazardous

In response to DIPP reference in June


2013, seeking CMAs suggestions for
facilitating enhanced usage of Alternate
Fuels, the Association suggested broad
measures needed to be taken for
achieving this and also indicated the need
for involvement and action on the part of
specific authorities/departments of the
16

53rd Annual Report

FWs for Coal Loading by Rail

wastes as Alternate Fuels without any


negative impact on environment, which
while providing an effective solution to
the menace of ever-increasing waste
generation also conserves the depleting
fossil fuel, namely coal. It was stressed
that the Cement Industry needs to be
given necessary preference in
the utilization of all such
Alternate Fuels.

During the year 2013-14, Cement Industry


received on an average 965 Four
Wheelers (FWs) per day for loading of
Coal, as against 1050 FWs per day in
2012-13 i.e. a decrease of 85 FWs per day
over last year.

Further, in order to feed the


various types of Alternate Fuels,
the

plants

have

necessary

to

make

modifications/

replacements

in

the

AFR

handling equipments/ feeding


systems which require large
investments

as

well.

To facilitate and encourage AFR


usage,

extending

capital

subsidy

Study Group Rates of Royalty on Coal and


Lignite

for

creation of pre-processing and feeding


systems similar to the one being extended

Under Section 9(3) of the Mines and


Mineral (Development and Regulation)
Act, 1957, the Central Government is
empowered to amend the Second
Schedule to the Act so as to enhance or
reduce; once in three years, the rates of
royalty on minerals specified in Schedule-I
of the said Act including coal. In July 2014,
the MOC constituted a Study Group in
order to consider the question of revision
of rates of royalty on coal and lignite in all
its aspects, under the Chairmanship of
Additional Secretary, MOC. Members of

to incinerators was recommended.


Additionally, coverage of expenditure on
collection,

process

and

creation

of

facilities for conversion of Municipal Solid


Waste

(MSW) to

Refuse-derived

Fuel

(RDF) under CSR spending under Section


135 of the Companies Act, would lead to
enhanced use of RDF in Cement Industry,
which can reduce the nuisance of land fill
and contamination cost by disposal of
MSW by Municipal Corporation.

17

the Group include Joint Secretary, MOC; a


Representative each of Ministry of Mines;
Ministry of Power; CMD, CMPDIL; CIL;
Federation of Indian Chambers of
Commerce
and
Industry
(FICCI);
Federation of Indian Mineral Industries
(FIMI) with Director, MOC as
its Convener.

year, a growth of 3.74% over last year. A


Bar Chart below gives the total loading of
cement and clinker by Rail. Railway zonewise details of Cement/Clinker loading are
given in the Annexure-V.

TRANSPORTATION
RAILWAYS
Cement Industry continued to
struggle hard, during the year
under

review,

transportation

in
of

the

Cement,

Clinker, Coal, Fly Ash, etc., by


Rail due to a raft of reasons
pertaining to (a) Commercial (b) Policy

Similarly, the total earnings generated by


the Railways from the Cement Industry
went up by 5.25% over last year, from
Rs.8233.40 crores in 2012-13 to
Rs.8665.32 crores in 2013-14.

and (c) Technical. Despite the fact that


Rail transport is 4-5 times more energy
efficient than road transport, the end cost
of Rail Transportation continues to be
much higher than the

Road Transport

Enhancement in Transportation Cost

due to regular direct or indirect hikes in


the

freight

availability

rates
of

infrastructure

rakes

and

coupled

constraints

In the last 2/3 years, Railway Board had


taken a number of Policy measures that
have resulted in enhancement of the
overall transportation cost of cement by
Rail anything between 36% and 38%
through its various administrative policy
dispensations. From June 2014, Railways
have steeply increased freight rates by
6.5% and Wagon Registration Fee from
Rs. 15000 to Rs. 50,000 per rake. CMA
has been submitting to the Railway Board
the need for and urgency to lower the

inadequate
at

with
the

terminals.

Cement and Clinker Transportation by Rail


and Revenue Generation
As per the statistics hosted by Railways on
their website, loading of cement and
clinker by Rail for 2013-14 was 109.81
Mn.t. as against 105.85 Mn.t. previous
18

53rd Annual Report

Rail Cement Co-ordination Group

overall transportation cost of cement,


clinker, etc. by Rail, if Rail co-efficient for
cement has to go up.

Two meetings of the Rail Cement


Co-ordination Group (RCCG) were held
under the Chairmanship of Shri Manoj
Akhori, Executive Director TT (F),
Railway Board. The meetings were graced
by the Member Traffic and other senior
officials with their presence. During the
meeting, Railways response was positive
on the following issues raised by the
Industry representatives:

Meeting with Honble Railway Minister


A small delegation of CMA under the
leadership of its President Shri O.P.
Puranmalka, met Shri D.V. Sadananda
Gowda on 5th June 2014 and, inter alia,
requested him to withdraw the Railway
Board circular of 16.5.2014 steeply
enhancing the demurrage and wharfage
charges six times of the base rate from 1st
June 2014.

 Railway Board agreed in principle to


mechanize five goods sheds in the
country handling cement, to begin
with. They requested CMA to send
them a list of preference indicating five
Goods Sheds where Cement Industry
wants Railways to create infrastructure
facilities for unloading.

With the efforts of President, CMA and


the Committee on Railway Matters,
Railway Board has reviewed the matter
and decided that the guidelines contained
in their Circular under reference may be
withheld till further orders and the
guidelines prevailing prior to 1st June 2014
will be followed.

 Railways would consider and examine


Industrys request for 25 to 30% freight
rebate for short-lead movement of
cement say upto 450 kms. to
encourage shifting of present short
lead cement traffic from Road to Rail
which is about 40 to 50% of the total
despatches.

CMA Committee on Railway Matters


During the year under review, CMA
Committee on Railway Matters, under the
Chairmanship of Shri Rajeev Mehta,
Executive President (Logistics), UltraTech
Cement Ltd., had Meetings with
Chairman, Member (Traffic), Member
(Commercial),
Advisors,
Executive
Directors and other senior officers of the
Railway Board to keep them abreast with
Cement Industrys Rail-related problems
with suggestions for their amicable
solutions.

 Before making any announcement of


any Scheme whose implementation
will impact the Cement Industry,
Railways would first invite the inputs
from the Cement Industry and
thereafter would also discuss with
them the Draft Policy concerning
cement.

19

Representations/Presentations

Rakes requirement of the Industry may


kindly be met in full throughout the

In order to encourage and enhance Rail


share for movement of cement, clinker
and input materials by Rail, CMA, on
behalf of the Cement Industry, made the
following submissions to the Railways,
from time to time, in its various meetings,
representations and presentations:

year,

particularly

during

peak

construction period.
The

problem

of

the

Industry

in

claiming Cenvat Credit on Service Tax


on

Transportation

by

Rail

be

addressed.
CMA requested the Railway Board to
withdraw their Rates Circular No. 20 of
20th June 2014 hiking the freight rates
by 6.5% as Cement Industry, which has
already
been
reeling
under
tremendous price pressure due to
sluggish demand of Cement, cannot
absorb this increase.

Railway Board should withdraw their


Rationalization Scheme General Order
No. 01/2012 Amendment No. 6 of
11.02.2014, whereby transportation
cost for Cement Plants falling under
Jabalpur Division of the West Central
Railway (WCR) has gone up between

All important terminals handling


cement in the country may kindly be
mechanized with world-class facilities
for improving better turnaround of
wagons.

18.7% and 77.5% depending upon the


destination the material is to be
transported.
Railways may take speedy action on all
the proposed Private Sidings which

Encourage private investments in


Lease Wagon Investment Scheme
(LWIS) and other Schemes of Railways
by providing freight rebate of at least
22% and that too for the entire life of
the wagons i.e. 35 - 40 years.

could not be set up in the last few


years for want of various clearances
from the Railways.
Railways should consider scrapping its
Dynamic Pricing Freight Policy for

Modified Wagon Investment Scheme


(MWIS) Policy be put in place after
discussion with actual users.

Cement Industry as various Policy

Before announcing any Policy, inputs


from CMA/ Cement Industry may
kindly be obtained.

transportation cost of Cement by Rail.

Decisions under this Scheme have


significantly

enhanced

the

overall

This has led to a steady shift to Road


transportation.

20

53rd Annual Report

Bulk Movement of Cement

and fly ash, for the entire life of wagons,


which is 35-40 years.

CMA continued to request to the Railways


to suitably bring down the Rail
Classification Slab for bulk cement and
also to provide attractive freight discount
to all those who purchase Special Purpose
Wagons for bulk movement of cement

Railway Budget 2014-15


Shri D.V. Sadananda Gowda, Honble
Railways Minister has presented the
Railway Budget for 2014-15 on 8th July
2014.

RAIL BUDGET 2014-15 MAJOR HIGHLIGHTS


CONCERNING CEMENT INDUSTRY
 Target for freight loading has been firmed up at 1101 MT for 2014-15, which is 51 MT
more than 2013-14.
 Setting up of Private Freight Terminal on PPP model to develop network of freight
terminals.
 Setting up of Logistic Parks to modernize logistics operations; Top priority to
mechanization of loading and unloading.
 Suitable pricing mechanism to garner additional revenue from empty flow - Pilot
project for automatic rebate to customers offering traffic through computerized
Freight Operations Information System (FOIS).
 Launching online registration of demands for wagons in next two months for
facilitating online payment of Wagon registration fee.
 Initiating process for ERR (Electronic Railway Receipt) during the year.
 Close monitoring of Dedicated Freight Corridor Project, Implementation of Eastern
and Western DFCs; Target of nearly 1000 kms of civil construction contracts.

POWER

become a key concern for the industry.


Proactive use of Waste Heat Recovery
(WHR) and Alternate Fuels like Municipal
Wastes, Cut Tyres, Paint Sludge, Biomass,
will be important alternatives to coal in
the years to come.

Uninterrupted power supply is a must for


running the Cement Plants that require
around 20 MW of power for a million
tonne Cement plant. Power constitutes a
major cost component in cement
manufacturing process.
With the
projected additional capacities for cement
and clinker, Energy security is going to

It is gratifying that almost all the cement


plants have installed captive power
generation capacities to the extent of 60%
21

of their requirement, and even 100% in


some cases. Captive power generation
capacity of approx. 118 MW in 1982-83
has risen to more than 4200 MW by
2012-13. CMA is, however, hamstrung by
lack of up-to-date information. The 4200
MW captive power figure is inclusive of
the power capacity set up through Wind
Farms and WHR power plants.

clinker in a developed country like Japan.


The Industrys proactive participation in
the ongoing implementation of the PAT
(Perform, Achieve and Trade) Scheme of
Bureau of Energy Efficiency (BEE) (under
the National Mission for Enhanced Energy
Efficiency- one of the Eight Missions of
the Prime Ministers National Action Plan
on Climate Change) is expected to drive
further reduction in energy consumption
in the cement plants.

WHR systems are technologically proven


and stable alternatives. However, these
call for a high capital investment. Besides,
adequate policy and financial incentives
need to be provided by the Govt. With
the right set of incentives, the Cement
Industry has the potential to abate up to
nine MTPA of CO2 emissions by 2025.

The other issues, which


merit due
attention of the authorities towards the
industrys efforts for further energy
efficiency improvements, include the
bottlenecks in (i) increasing the Usage of
Alternate Sources of Energy, and (ii)
exploiting full potential of Cogeneration
of Power through WHR Systems. Usage of
AFR, WHR based cogeneration of power,
etc. in the Cement Industry will go a long
way in reduction of the Carbon Footprint
of the industry.

The Industry has placed significant focus


on improving energy efficiency in plant
operation over the years and it is an
ongoing process. By the end of XIIth Plan
(Year 2016-17), the Cement Industrys
average electrical energy consumption is
expected to come down to 78 kWh/t
cement from 80 kWh/t cement and the
average thermal energy consumption to
about 710 kcal/kg clinker from 725
kcal/kg clinker. The best electrical energy
consumption presently achieved by the
state-of-the-art cement plants is nearly 66
kWh/t cement and thermal energy of
about 667 kcal/kg clinker, which are
comparable to the best reported figures
of 65 kWh/t cement and 660 kcal/kg

EXPORT
Despite the fact that the quality and
technology of Indian cement is worldclass and the Industry is having an excess
cement capacity of about 100 Mn.t.,
exports of cement and clinker have been
waning continuously mainly because of
high level of State levies and royalties for
which there is no Cenvat Credit,
infrastructure
constraints;
high

22

53rd Annual Report

PROMOTIONAL ACTIVITY: ADVOCACY


AND AWARENESS GENERATION

transportation cost from plants to border


points/ports; in addition to Governments
encouragement for import of cement with
no custom duty, thus distorting a level
playing field between domestic and
imported cement.

Promotion of Cement Concrete Roads and


White-Topping
Keeping the interest of the nation in
mind, CMA and its constituent member
companies have undertaken extensive
and wide ranging programme to promote
the Construction of Techno-economically
Superior Cement Concrete Roads and
White-Topping (Concrete Overlay over
Bituminous surface) in Urban and Rural
India as also Highways throughout the
country.

With a view to making Indian


Cement/Clinker competitive in the Global
Market, CMA has been making following
submissions to the Govt., from time to
time:
 Royalty paid on limestone should be
neutralized for export of cement. This
is in sync with the approach that
domestic taxes are not exported.

As a part of advocacy, propagation and


documentation, CMA has brought out
several publications both informative and
technical as well, organized National
Seminars/Workshops, held interactive
meetings,
made
representations/
presentations to convince the decision
makers of the superiority of Concrete
Roads with the help and support from
some reputed organizations like Central
Road Research Institute (CRRI).

 Duty Drawback should be enhanced to


3% (i.e. erstwhile DEPB rates) to
sustain exports.
 There is no Custom Duty for import of
Cement into the country. This anomaly
needs to be removed to offer a level
playing field to domestic production
vis--vis imports.
 For
the
purpose
of
exports,
classification of cement and clinker for
Rail freight be reduced from 150 as of
today to 140.

The sustained efforts of CMA and


member companies have resulted in a
gradual change in the mindset of
Engineering Fraternity & officers in
Government
and
semi-Government
bodies in favour of Cement Concrete
Roads/ White-Topping.

 Investments made for decongesting


the National ports by developing
private jetties/ports for export of
cement and clinker be allowed a higher
rate of depreciation.

23

Workshops/Seminars

Presentations/Meetings/Communication:

CMA officials along with Cement


companies held Meetings and organized
Presentations with Central and State
Government Officials for promotion of
Cement Concrete Road/ White-Topping. A
list of the Presentations and Meetings
organized is at Annexure-VII.

CMA and UltraTech Cement Ltd. jointly


Workshop
on
Cement
organized
Concrete Roads and White-Topping in
June, 2013 at Dehradun. More than 100
delegates comprising Engineers from
Public Works Department (PWD), Rural
Engineering Services (RES), Irrigation
Department of Uttarakhand, Mussoorie
Dehradun
Development
Authority
(MDDA),
Nagar
Nigam,
Dehradun,
Consultants, Contractors, Professors from
Engineering Colleges and representatives
from
Cement
Industry
actively
participated in the Workshop. Three
presentations were made by the experts
on Design, Construction, Maintenance
and Quality control aspects of Cement
Concrete Roads and White-Topping.
These presentations were very well
received and evinced keen interest
amongst the participants and the
discussions that followed showed the
openness of mind of the Engineers and
Officers of the Government and
Authorities towards adoption of new
technologies.

The Presentations made by experts in


these meetings mainly emphasized on the
superiority and cost effectiveness of
Cement Concrete Roads especially for the
concerned areas of the Government
Departments.
CMA addressed letters to the Ministries
and Senior Officers of Central and State
Government Departments highlighting
the advantages of building Road network
in Cement Concrete. The authorities were
also requested to take policy decision to
construct Urban & Rural Roads, State
Highways and National Highways in
Cement Concrete. Further, detailed
reports on how Cement Concrete Roads
are superior and most economical to the
Bituminous ones apart from having host
of other advantages have been provided
to the news agencies on their request.
This news has also published in the
National Newspapers.

During 2013-14, CMA participated/


Sponsored in the workshops/ seminars
related to Cement Concrete Roads which
were organized by the organizations such
as PHD Chamber, UBM India Pvt. Ltd. and
Indian Concrete Institute. A detailed list of
Workshops & Seminars on Cement
Concrete Roads CMA participated in/
Sponsored is at Annexure-VI.

Construction of Roads in Coalfield Areas:


CMA learnt that Mahanadi Coalfields Ltd.
(MCL) has decided to construct Cement
Concrete Roads costing approximately

24

53rd Annual Report

CMA Publications: CMA has been


periodically
bringing
out
several
publications
both
informative
and
technical as a part of advocacy,
propagation and documentation of
Cement Concrete Roads. CMA brought
out a Publication Cement Concrete
Roads for Rural India - A Must in
2013-14.

Rs.1000 crore for transporting coal by


heavy load carriers from their coalfield
areas to stockyard/siding. This decision
was taken by the subsidiary company of
CIL because the existing bituminous road
could not take this loading resulting in
frequent damages causing disruption in
the coal evacuating traffic.
CMA, therefore, addressed letters to
other coal subsidiary companies of CIL
apprising them that Cement Concrete
Roads have a definite edge over Bitumen
ones, especially for heavy load carriers.
Today Cement Concrete Roads are
cheaper than Bituminous ones, even at
the initial stage of construction in most of
the cases, apart from having durable and
maintenance free life of 30-40 years. On a
life-cycle-cost basis, in any case, Cement
Concrete Roads are Cheaper and better
alternative. CMA requested subsidiary
coal companies to consider for Cement
Concrete Roads in their respective
Coalfield areas as well.

The main objective of the Publication has


been to spread and deepen awareness to
the authorities and decision makers,
particularly at the district and large towns
about

the

construction

of

Cement

Concrete Roads and White-Topping under


various schemes of Central and State
Government in Rural India and the
practices followed in some States for
guidance. The Publication was released by
Dr. E.M. Sudarsana Natchiappan, the then
Honble Minister of State for Commerce
and Industry, Govt. of India on the
occasion of CMAs 52nd Annual Session

In November 2013, CMA requested the


Additional Secretary, MOC to take policy
decision for construction of Cement
Concrete Roads instead of Bituminous
ones in the subsidiary coal companies of
CIL for all the upcoming projects. To take
the matter forward CMA organized
meetings and presentations at CMPDIL,
Central Coalfields Limited (CCL), Ranchi
and Western Coalfield Limited (WCL),
Nagpur on 23rd January 2014 and 20th
March 2014 respectively.

held in January 2014 and was widely


circulated.
Tender Notices for Cement Concrete
Roads : CMA has regularly been receiving
the details of tender notices for
construction of Cement Concrete Roads
invited by the construction agencies all
over the country. CMA requests the Road
Construction Agencies to take proper
quality control measures during the
construction of Cement Concrete Roads in
25

their areas. A copy of the Associations


publication Dos and Donts is being sent
to them for information and guidance.
Nodal officers of concerned areas are also
being requested to interact with the
construction agencies and provide them
technical assistance.

The

Welcome Step by the New Government at


the Centre

Housing and Urban Poverty Alleviation,

It is heartening to record that after


assuming charge, the Hon'ble Minister for
Road Transport, Highways and Shipping,
Shri Nitin Gadkari, has been taking proactive initiatives in advising the engineers
for going ahead with construction of
Highways in Cement Concrete.

had interactive meeting with Shri Arun

Government

has

now

already

commenced the process of fixing the


annual rate of cement by inviting tenders
from the cement manufacturers.

Housing
Meeting with the Secretary, Ministry of
Govt. of India : A small delegation of CMA
Kumar Misra, IAS, Secretary, Ministry of
Housing and Urban Poverty Alleviation,
Government of India on 24th June 2013
and made detailed presentation on RMD
(Rapid

Monolithic

Disaster

Proof)

Technology for urban/rural mass housing.

Your Managing Committee is happy to


report that the Ministry of Road Transport
and Highways vide its Circular No.
RW/NH-33044/31/2014/S&R
(R)
(Pt)
th
dated 4 August, 2014 to the Chief
Secretaries
of
all
the
State
Governments/UTs, Principal Secretaries,
Engineer-in-Chief and Chief Engineers of
Public Works Departments of all the
States/UTs etc. has directed to evaluate
the most cost effective pavement
alternative on the life-cycle-cost basis
and not only on the initial cost of
construction basis. The circular further
directs that preference to Cement
Concrete Roads be given even if they are
costlier by upto 20%.

This technology can be advantageously


used for the construction of houses under
mass housing projects in urban area in the
various Govt. Schemes across the country.
Subsequently,
regarding

CMA

RMD

addressed letters

technology

to

Chief

Minister, Govt. of Uttarakhand; Principal


Secretary

Public

Uttarakhand;
Housing,

Works

Minister

Slum

Department,

of

State

Improvement,

for

House

Repairs and Construction, Urban Land


Ceiling

etc.

Govt.

of

Maharashtra;

Principal Secretary, Housing Department,


Govt. of Maharashtra; and Chairman &
Managing Director, HUDCO, New Delhi.

26

53rd Annual Report

TECHNICAL MATTERS

matters of concern, viz. Corporate Social


Responsibility (CSR), our continued
National and International collaborative
efforts with Confederation of Indian
Industry (CII), Cement Sustainability
Initiative (CSI), Institute for Industrial
Productivity (IIP), etc., apart from our
information dissemination activities, to
drive industrys consensus on all Technical
Issues besides responding to the
Authorities on the various issues of the
Member Cement Companies.

During the year, the CMA Technical


Committee engaged itself with the
emerging Cement Standards, Emission
Norms being finalized by MoEF&CC, apart
from addressing the Fuel Security
concerns of the Industry.
The Committee continued to discharge its
functions under the Chairmanship of Shri
S.K. Wali, Wholetime Director, JK Lakshmi
Cement Ltd., being ably assisted by Shri L.
Rajasekar,
Executive
President
(Technology & Research Centre),
UltraTech Cement Ltd., Chairman of
the Committees Task Force on
Environment,
and
Shri
D.
Sivagurunathan, Advisor (Technical),
The India Cements Ltd., as the
Chairman of the Committees Task
force on Energy.
The 56th, 57th, 58th, and 59th meetings
of the CMA Technical Committee
along with Task Forces were regularly
held during the year.

59th CMA Technical Committee Meeting held in Mumbai on 24.1.2014

Besides
the
above,
sub-group
meetings on BIS and Environment were
also held during the period.

During the year, CMA Technical


Committee sustained a great loss in the
passing away of Dr Debashish Ghosh, a
long-time dedicated Senior Member
serving on the CMA Technical Committee
& Sr Joint President, New Projects and
R&D, Birla Corporation Limited. CMA,
however, got some respite with the
continued support of the existing
Members as well as some new Members

The above meetings focused on dealing


with emerging Regulatory Regime calling
for stricter norms for Product & Quality,
Energy Efficiency & Consumption, and
Environmental Emissions that would
impact on the day-to-day Cement plant
operations, and broadly discussed other
27

the BIS Sectional Committees decisions


for adoption and publication, relate to -

joining the fold of the Technical


Committee after the reorganization of the
CMA Technical Committee.

i. Having Lime Saturation Factor (LSF)


requirement as 0.66 to 1.02 to take
care of clinkers for any variety of
cement.

A summary of the Issue-wise activities


conducted during the year is presented
below.

ii. Having SO3 content requirement as


2.75% maximum to accommodate the
scenario of increasing use of pet coke.

Bureau of Indian Standards (BIS) and


Quality Matters

iii. Granulometric composition of clinker


to be as per Table below keeping in
view the practical considerations
including increased use of pet coke:

Subsequent to publication of IS 8112:2013


effecting Revision of SO3 in the Indian
Standards for OPC by raising the Chemical
parameter of SO3 percentage Max, given
as 3.0 in IS 8112:1989 to 3.5 and
thereby meeting a long standing demand
of the Cement Industry and your
Association, the Draft Specifications for
Clinker under wide circulation were
discussed threadbare in CMA Technical
Committee, and CMAs comments on the
issue sent to BIS. Comments received by
BIS from CMA, and other stakeholders on
the Draft Indian Standards Specification
on Portland Cement Clinker were
discussed in its 4th Meeting of the BIS
Cement and Concrete Panel CED 2:1/P1
on 27th February 2014. The Panel
considered
the
comments,
the
recommendations
of
which
were
subsequently approved by BIS in its 21st
Meeting of the Cement and Concrete
Sectional Committee (CED 2) held on 14th
March
2014.
Most
of
the
amendments/revisions suggested by the
CMA members were agreed upon and
duly incorporated. While endorsing the
recommendations of the Panel, some of

Sl.
No.

Clinker
Size

Proportion by
mass, Percent

i)

< 5 mm

35, Max

ii)

5 50 mm

60, Min

iii)

>50 mm

10, Max

Energy Issues - Bureau of Energy


Efficiencys (BEE) PAT Scheme
Pursuant to identification of the various
parameters finalised by the BEE SubTechnical Committee of Normalization
towards implementation of the PAT
Scheme for the Cement Sector during the
First Cycle of the scheme (2012-2015),
and subsequent endorsement of the same
by the BEE Technical Committee (Cement
Sector) in its meeting on 24th July, 2013 to
consider the impact of the parameters
such as Capacity Utilization, Plant Load
Factor, Effect of using Pet Coke, Product
Mix, Power Mix (Import/ Export of
Power), Clinker Import/ Export, Nonavailability of Bio-Mass, and Coal Quality,
etc. The Specific recommendations of the
28

53rd Annual Report

BEE
Technical
Committee
were
considered by BEE, following which BEE
circulated the findings of its Technical
Committee
(Cement
Sector)
on
Normalization of the above impacting
parameters to the Designated Consumers
(DCs) to facilitate implementation of the
PAT Scheme in the Cement sector,
seeking their feedback. The consolidated
comments on the feedback were
discussed and worked out in BEEs
Technical Committee (Cement Sector)
Meeting on January 10, 2014.

consumed on project activity and


installation of energy efficient equipment.
Following developments have since taken
place in implementation of the BEEs PAT
Scheme for the Cement sector:
a) Final report on Normalization factors
and Modified Form-1 has been
submitted by the Sub-Technical
Committee for Cement Sector.
b) BEE has sent the Normalization
document along with the Modified
Form-1 to all the 85 DCs in the Cement
Sector and requested all the DCs to
submit:

Now, the DCs have to get ready for


conducting the mandatory Audit of their
plants under Section 14(i) which has to be
completed within 18 months after
notification.

i) Old Form-1 (As filled during the


baseline year) for the year 2012-13
(Previous Year) and 2013-14
(Current Year), which was used last
year while submitting the energy
consumption return.

Subsequent to the above Meetings of the


BEE
Sub-Technical
Committee
(Normalization/ Cement Sector), CMA
forwarded its comments to BEE raising
some of the key issues on the decisions of
the
BEE
Sub-Technical
Committee
(Normalization/Cement Sector), involving,
(i) Impact of Quality of Alternate Fuel in
Assessment Year, (ii) Inadequate Fly Ash
Quantity in Assessment Year, (iii) Quality
of coal used in Kiln, (iv) Limestone
Grindability, (v) Addition of New Line after
Baseline Year, (vi) Frequent Grid power
tripping, (vii) Use of baseline Clinker
factor in Assessment Year, (viii) Additional
safety
equipment
installation
in
Assessment Year, and (ix) Energy

ii) New Modified Form-I with inbuilt


Normalization Factor for the year
2007-08, 2008-09 & 2009-10
(Baseline year) and 2013-14
(Current Year). This form has inbuilt
normalization factors, and has been
developed now.

(c) All DCs were requested to fill the


necessary data in above two forms and
send to their respective State
Designated Agencies (SDAs) with a
copy to Bureau of Energy Efficiency
before 30/06/2014.

29

BEE, in association with the State


Designated Agencies (SDAs), has
organised four Regional Interactive
Workshops in June 2014, to explain the
Normalization factors and Modified
Form-1 for Cement Sector, as finalized
by the Technical and Sub-Technical
Committee of Cement Sector, at
Ahmedabad, Bengaluru, Udaipur and
Chennai.
PAT Workshop at Udaipur on 24th June 2014

Environment
On the Environmental front, CMA
continued to pursue vigorously the
emerging issues and focused on working
in tandem with the Govt. Authorities to
evolve realistic environmental standards
for Cement Industry. These include
MoEF&CC, Central Pollution Control
Board (CPCB), State Pollution Control
Boards (SPCBs), DIPP, etc.

MoEF&CC has since notified the Emission


Norms for SO2, NOx & Load-based
Particulate Matter (PM) for the Cement
Industry vide Gazette Notification on 25th
August 2014 that are too stringent to
achieve within the given time-frame
allowed.

Emission Standards for Cement


Industry
A series of intense interactions with the
Cement Industry Stakeholders, CMA and
NCB were held for over more than 3 years
by MoEF&CC/CPCB, in the process of
developing the Emission Norms. CMA
actively participated in these technical
deliberations and underlined the need to
prescribe implementable Standards and
Norms, particularly in view of their
introduction newly to the countrys
Cement plants. In the last Meeting of the
Expert Committee of MoEF&CC on 30th
January 2014, the Cement Industry had
placed its specific concerns on the Norms,
and followed it up with its letter dated 3rd
February 2014.

A Group of CMA Environmental Sub-Group with


Shri D.N. Pandey, Member-Secretary,
Rajasthan State Pollution Control Board at meeting
on 3.1.2014 at Jaipur

These Norms are at variance with the


suggestions of CMA for ensuring
enforcement of comprehensive and
realistic Emission Standards and positive

30

53rd Annual Report

Development of Environmental Standards


for Mining of Limestone

compliance in a phased manner and


subject to review after 5 years for
applying stringency if needed, to the
Norms proposed after examining the
environmental performance of the
Cement plants over a specified period as
reasonable, after their introduction.

In regard to the newly emerging


Environmental Standards for the Cement
sector in case of Limestone Mining, CPCB
convened a meeting of stakeholders on
30th January 2014, where Central Institute
of Mining and Fuel Research (CIMFR),
Dhanbad made a presentation on the
findings of their consolidated study
covering the additional five plant mines as
proposed by the industry after having
conducted the measurements during
MarchMay 2013 in five selected plants
of CMA Member Companies. CMA
participated in the meeting alongwith the
representatives from Member Cement
companies and apprised the Authorities
of the specific constraints, namely,
scarcity of water for prevention and
control of emissions vis--vis the
increasing
pressure
for
water
conservation on the other hand, not
allowing the plants to meet the fugitive
emission standards for limestone mining
being proposed. As a follow-up, CMA
wrote to CPCB that the proposed activitywise fugitive emission standards for PM10
and PM2.5 in limestone mining be
stipulated at 1200 g/m3 and 750 g/m3
respectively, to begin with.
This has to
be followed by the Peer & Core Expert
Group
Meeting
to
consider
the
recommendations further, before CPCB
takes a final call.

The above Norms issued by the MoEF&CC


have evoked strong apprehensions in our
Member Cement Companies regarding
the Cement Industrys current capability
to comply with these Norms and,
therefore, their implementability. CMA,
accordingly,
made
a
strong
th
representation on 25 September 2014
to MoEF&CC, bringing to its attention the
concerns of the Industry that were earlier
brought out before CPCB/MoEF&CC with
regard to the implementation of the
Emission
Norms,
particularly
the
Industrys specific concerns on the impact
of
poor
quality
of
input
raw
materials/fuel/power, on the Emissions,
and the practical difficulties in meeting
them within the given time-frame, the
proposed standards in the existing plants
having constraints of technology vintage
and layout, besides the huge capex and
operating costs required for upgradation
etc. Highlighting the Cement plants
difficulties to meet the notified Norms in
respect of each of Particulate Matter
(PM), NOx, within the allowed time-frame,
the Ministry was requested for a review
of the notified Norms so that a selfsustaining Cement Industry does not get
demoralised and is obliged to face
consequences of non-compliance.

31

Other Initiatives

Switzerland, and Mr. M.A.M.R. Muthiah,


President, CMA. Mr. Saurabh Chandra,
Secretary (DIPP), Ministry of Commerce &
Industry, Govt. of India, delivered the
Keynote address. A CMA-IIP joint
publication Action Plan for Enhancing the
Use of Alternate Fuels and Raw Materials
in Cement Industry was formally
released by the Chief Guest, Mr B.K.
Chaturvedi.

Increasing Thermal Substitution Rate (TSR)


in Indian Cement Industry

CMA entered with IIP, Washington DC, a


Consulting Agreement for the IIP-funded
project
on
Increasing
Thermal
Substitution Rate (TSR) with increased
usage of Alternate Fuel and Raw materials
in the Indian Cement Industry. Under
the First phase of the Project, an Action
Plan towards increasing AFR usage was
developed, with the participation and
involvement of multi-stakeholder groups
comprising Industry, Policy Makers,
Regulators,
Technology
providers,
Academia, etc. from across the world. The
Second phase culminated with an
International Conference on Enhanced
Usage of Alternate Fuels & Raw Materials
(AFR) - Co-Processing in Cement Plants
organized jointly by CMA & IIP, in New
Delhi, during 7- 8 August 2013, to share
the findings of the IIP-CMA study under
Phase-I of the Project on developing an
Action Plan towards increasing AFR usage.

The Conference was a huge success with


active participation of more than 250
invitees and delegates representing crosssection of experts from the State and
Central Regulatory Authorities, Cement
Industry, Service Providers, Universities
etc. from across the world.
As a follow up to the earlier study
conducted, efforts are now being made to
continue these initiatives through a fresh
tie-up with IIP which has been formulated
and a fresh Agreement signed. As per this
Agreement, CMA in association with IIP,
has decided to organize the Second
International Conference on Enhanced
Usage of Alternate Fuels and Raw
Materials in Cement Industry on 19-20
February 2015 in New Delhi. The
Conference is broadly expected to
address the various environmental issues
which still continue to come in the way of
increasing TSR%, sharing the Global
experiences and perspective, leveraging
CSR initiatives now legally recognized and
available for increased efforts in
processing of Municipal Wastes, besides a
few case studies on the success of various

The Conference was inaugurated by Mr.


B.K. Chaturvedi, Member, Planning
Commission, Govt. of India, with
Welcome address by Dr Jigar V. Shah,
Executive Director, IIP, Washington DC,
Introductory address by Mr. Ratan K.
Shah,
Group
Executive
President,
UltraTech Cement Ltd, and Special
addresses by Mr. Philippe Fonta,
Managing Director, World Business
Council for Sustainable DevelopmentCement
Sustainability
Initiative,
32

53rd Annual Report

Canada in September-October last year,


the CSI-WBCSD organized its Meeting of
Task Force 6(Communications) for the
first time outside Europe, in Mumbai on
25-26 February 2014. Representatives
from our Member Cement companies,
namely, Dalmia Cement Bharat Ltd,
Heidelberg Cement India, My Home
Industries, Zuari Cement, besides ACC and
Ambuja Cements participated in the
meeting. Overseas representatives of
CRH, Italcementi, Lafarge, Taiheiyo
Cement, IMS also participated in the
meeting. CMA was represented by Dr.
S.K. Handoo, Advisor (Technical), and
Shri S.V. Joshi, Jt Secretary.

Alternative fuel usages in Cement plants.


To facilitate the Cement Machinery and
Equipment manufacturers dealing with
Alternate Fuels related systems to share
the detailed features of their products
with the participants, on the sidelines of
the Conference, CMA is arranging for
Exhibitions space for the prospective
Exhibitors.

CMA and Cement Sustainability


Initiatives (CSI)
CMA participated in the CSI partners
meeting held in Vancouver, Canada on
September,
2013
where
a
30th
presentation on Indian Cement Industry
Towards Low Carbon Roadmap was
made by the Secretary General, Shri N.A.
Viswanathan and Dr. S.K. Handoo,
Advisor(Technical).

The meeting discussed key action items in


2014. Mr Philippe Fonta of CSI presented
an overview of the different work areas of
the CSI while Ms Sunita Pendse of
UltraTech supplemented about TF6,
specifically on the role of a TF6 member.
In order to increase the awareness level
about the CSI within companies, it was
suggested to produce a list of tools and
resources as a handy reference for
companies. Dr. S.K. Handoo, Advisor
(Technical),
CMA,
presented
the
challenges and opportunities of the Indian
Cement Industry.

Chief Executives of other Cement


Associations from USA, Canada, Japan,
Europe, Brazil, South Africa, Australia,
China, participating in the meeting also
made presentations on the status of their
industry.
The CSI Annual Forum meeting was held
in the same venue during 1-2 October
2013. Some interesting presentations
made
included
Green
Buildings,
Sustainable Construction. Besides the
break-out sessions, amongst others,
deliberated on Research and Innovation,
New Requirements for materials, Energy
efficiency and conservation.

Highlighting the importance of CSIs


participation and prominent presence in
key local events, it was suggested that CSI
should also explore opportunities to be
featured as the voice of the cement and
concrete sector in key environmental
events to raise the profile of the CSI and
to establish a seat for the Cement
Industrys presence in the discussion.

Following the CSI Partners meeting and


the CSI Annual Forum held in Vancouver,

33

CEO ROUNDTABLE ON CSR FOR


CEMENT SECTOR IN LIGHT OF
SECTION 135, COMPANIES ACT 2013

stakeholders that included, Dr Bhaskar


Chatterjee, Director General and CEO,
Indian Institute of Corporate Affairs,
Ministry of Corporate Affairs, Govt. of
India; Secretary General, CMA and
CEOs/Senior Officials of CMA Member
Cement Companies, in addition to Dr.
Jigar Shah, ED, IIP.

A Google Panel Discussion on CSR for


Cement Sector in light of Section 135 of
the New Companies Act 2013, was held
on 13th March 2014. The Panel Discussion
was organized by IIP and NextGen, a
leading
CSR
and
Sustainability
Management Company.

The CEOs of the cement companies, while


reiterating their commitment to CSR also
shared a lot of optimism for creating winwin models of collaboration with the
Society. CMA representatives, while
mentioning about their ongoing initiatives
with IIP on promoting the use of
Municipal Solid Waste (MSW) as a fuel to
replace coal in cement kilns, felt that such
initiatives having high environmental and
societal impact, could possibly qualify as a
CSR activity. Director General, IICA, while
clarifying some of the issues raised by the
panelists mentioned that the new Act
allows for a greater flexibility for planning
initiatives that go beyond the traditional
approach to CSR. Executive Director, IIP,
offered to play the role of a catalyst for
promoting partnership between Industry,
Govt. and the society in taking advantage
of the opportunities and in dealing with
the possible challenges under the new
CSR Act.

Section 135 of the Companies Act, 2013


mandates reporting of CSR initiatives and
spending at least 2% of Net Profit on CSR
activities by Companies with net worth of
Rs.500 crores or more or turnover of
Rs.1000 crores or more or a net profit of
Rs.500 crores. Indian Cement Industry,
with an estimated CSR corpus fund of
over Rs.210 crores, will be one of the
major contributors to the CSR kitty/pie
compared to the total capital to be
generated, which is of the order of
Rs.20,000 crores.
The objective of the Panel discussion was
to brainstorm on how best the Cement
Industry can further the CSR agenda in
India through a collaborative approach for
maximum
impact,
while
meeting
compliance requirements of Section 135
of The Companies Act, 2013 i.e. creating a
win-win situation for the society and the
businesses alike by promoting the usage
of Municipal Solid Waste (MSW) in
cement sector.

10th Green Cementech


As in the past, CMA joined hands with CII
to organize the 10th Green Cementech
2014 Conference & Exposition on 15 &
16 May 2014 at Hyderabad. The Theme
for this years Conference was Make

The discussions were guided by an


experienced and distinguished group of

34

53rd Annual Report

Indian Cement Plants World Class in


Green.

recovery systems and higher thermal


substitution with alternate fuels in kilns.

The areas of focus in the Conference


included (a)Technological advancement in
Waste Heat Recovery systems and
operational case studies; (b) Special focus
on innovation in renewable energy
applications and financing options,(c)
Energy efficiency in auxiliary equipments,
and (d) Recent developments on
composite cement & policy framework,
among others. A publication on Manual
on Energy Benchmarking for Cement
Industry was also released, on the
occasion.

In the Master Speaker Session, Shri N.A.


Viswanathan, Secretary General, CMA,
shared the challenges & prospects of
Cement Industry and also highlighted the
role of technology related factors to
improve energy efficiency levels and thus
reducing the energy consumption. The
Session included a Presentations on
producing fuel by using algae growth
technology by utilizing the CO2 emission
generated from cement kilns by Mr. H.J.
Nielsen, from LV Technology Public
Company Limited.

Secretary General, CMA, in


his
Special
Address,
highlighted
the
accomplishments of Indian
Cement Industry in adoption
of
various
energy
conservation technologies
for achieving environment
sustainability.
He
also
highlighted the progress of
Cement
Industry
on
adoption of waste heat

Shri N.A. Viswanathan, Secretary General, CMA,


Chairing the Session I : Master Speaker Session

Shri H.M. Bangur, Managing Director,


Shree Cement Limited was felicitated at
the Conference for his remarkable
contribution to the Cement Industry. In
the CEOs Panel discussions that followed,
Shri H.M. Bangur in his Address stressed
on the need of sustainability thoughts in
business models and said that the Green
and Clean business is profitable.
Shri Bangur also shared his experience on
various areas where Shree Cement is

Felicitation of Shri H M Bangur, Managing Director, Shree Cement


Limited for his exemplary contribution in promoting growth and
sustainability in the Cement Industry during his long
and distinguished carrier

35

summary of important articles, news


briefs and events summary culled from
reputed journals, published brochures
and newspapers and magazines covering
technical developments impacting the
Cement Industry.

pioneering the concept of energy


efficiency in manufacturing and adoption
of newer technologies like synthetic
gypsum production from exit flue gases in
Indian Cement Industry. Shri Bangur also
emphasized the need on increasing the
R&D
efforts
by
Indian
cement
manufacturers
to
achieve
higher
standards in manufacturing and product
innovation.

COMPETITION COMMISSION OF INDIA


Appeals before the Competition Appellate
Tribunal: against the Orders of Competition
Commission of India in -

Technological Information Dissemination &


Publications

(i) Appeal No. 103/2012


(against Case No. 29/2010); and

During the year under review, CMA


published four issues of the Quarterly
Journal,
Cement,
Energy
and
Environment focusing on the Technical
developments impacting on the Cement
Industry. The Journal continues to serve
as an excellent medium of communication
and dissemination amongst the ground
level technical personnel and executives
of the Member Cement Companies on
rapidly advancing spheres of technology
and developments across the world
including product quality & standards,
energy, environment, climate change and
sustainability
issues
bearing
huge
influence on the Cement Industry. Articles
from eminent National and International
Experts dealing with these subjects are
regularly published. A number of papers
are being regularly contributed by our
Member Companies related to energy
efficiency, waste utilization, development
of newer cements, reducing carbon
footprints, etc. in addition to sharing their
technical experiences and achievements.
Alongside, there are regular insertions of

(ii) Appeal No. 122/2012


(against RTPE No. 52/2006)
As reported last year, CMA had filed an
Appeal (Appeal No. 103/2012) before the
Competition Appellate Tribunal (CAT) on
27th August, 2012, including prayer for
complete Stay of the operation of the
Competition Commissions Order dated
20.06.2012 in case No. 29/2010. Since
the Commission had held CMA guilty in
the case No. 52/2006 also, CMA filed
Appeal (Appeal No. 122/2012) in this
matter as well before the Competition
Appellate Tribunal on 27th September,
2012 seeking relief to set aside the Order
of the CCI passed in RTPE No.52/2006 on
30.7.2012.
While disposing of the stay applications in
the
above Appeals, the Honble
Competition Appellate Tribunal had
passed an Order on 17th May, 2013 and
decided that there is a prima-facie case
for granting of stay, at least in respect of
the penalties, and accordingly, granted
36

53rd Annual Report

stay to the penalties with a condition that


the appellants deposit 10% of the
penalties imposed. As regards the orders
of cease and desist the Tribunal
refused to stay that order against the
appellants,
including
the
Cement
Manufacturers Association stating that
they do not find anything wrong at least
prima-facie.

Department, New Delhi, for a total Service


Tax liability of Rs. 10,27,73,198/- and an
equal amount of penalty, besides interest.
CMA filed its replies to the above SCNs
with the Commissioner, Service Tax, Delhi.
Commissioner, Central Excise & Service
Tax, Panchkula, thereafter passed an
Order-in-Original
dated
31.10.2012
against the above two SCNs confirming
Service Tax payable amounting to
Rs.1,76,19,563 for the above periods. An
equal
amount
of
penalty
i.e.
Rs.1,76,19,563/- was also levied in
addition to penalty of Rs.10,000/- u/s 77
of Chapter V of Finance Act, 1994.

In compliance of the above Order, CMA


deposited 10% penalty amounting to
Rs. 7,30,000/- on 14th June, 2013.
After the grant of Stay, the Tribunal has
been hearing the matter and, as of now,
the arguments on behalf of the Appellant
(M/s.Lafarge India Pvt. Ltd.) by Senior
Advocate Shri Gopal Subramaniam stands
heard.

This worked out to a total amount of


Rs. 3.52 crores besides interest, as against
the original demand of Rs.10.28 crores
with an equal amount of penalty and

The captioned matters were listed before


Justice G.S. Singhvi, newly appointed
Chairman, Competition Appellate Tribunal
on 26th November, 2014. After hearing
the parties, the Chairman directed that
the matter be now listed on 25th February,
2015 for hearing on day-to-day basis till
the conclusion of arguments.

interest applicable on tax demanded up to


the date of payment of tax.
Against this Order, two separate Appeals
were filed by CMA on 5th February, 2013
before the Customs, Excise & Service Tax
Appellate Tribunal (CESTAT), New Delhi,
praying to (a) Set aside the impugned
Order in original dated 31.10.2012 passed
by the Commissioner, Central Excise &
Service Tax, Panchkula and allow in
Appeal in full with consequential reliefs;
(b) Set aside the Service Tax demand
along with interest and penalty and stay
its recovery till the disposal of the Appeal;
(c) Grant a personal hearing etc.

SERVICE TAX ON MEMBERSHIP


SUBSCRIPTION
Members may kindly recall that CMA had
received two Show Cause Notices (SCNs),
the first for the period 2005-06 to
September 2009 and the second for the
subsequent period from October 2009 to
September 2011 from Service Tax
37

CMA received a communication dated 6th


November, 2013 from the Office of the
Asstt. Commissioner of Service Tax, New
Delhi informing that in CMAs case no stay
has been granted till now, as stay
application filed by CMA is still pending in
CESTAT. The communication added that
as per Board Circular No. 967/01/2013-CX
dated 01.01.2013 Recovery (is) to be
initiated 30 days after the filing of appeal,
if no stay is granted or after the disposal
of stay petition in accordance with the
conditions of stay, if any, whichever is
earlier. It further stated that the amount
had become recoverable from CMA and
(had) requested CMA to pay the
Government dues as Stay application
pending status did not hold any ground
in terms of Finance Act, 1994. It had also
added that if no compliance was received
within 15 days of receipt of the letter
recovery proceeding under Section 87 of
the Finance Act, 1994 will be initiated
against CMA.

had prayed that the Department may


kindly refrain from undertaking any
coercive action for recovery till the
disposal of the stay application by the
CESTAT, New Delhi.

CMA filed its reply on 25th November


2013, as drafted by M/s. Lakshmikumaran
& Sridharan, to the above communication
dated 6th November, 2013 received from
the Office of the Asstt. Commissioner of
Service Tax, New Delhi, stating that as
regards the issue of recovery of the dues,
it is a settled law that no coercive action
for recovery ought to be taken by the
Department during the pendency of the
stay application before the Appellate
authority.
Citations of various High
Courts were quoted in the reply. CMA

As members are aware, in the case of


Institutional & Industrial Sale, Cement
Industry is claiming concessional rate of
excise duty.

You Association is happy to record that


the Stay Petitions
have since been
allowed and granted dispensation with
the conditions of Pre deposit of dues by
the Honble Appellate Tribunal vide its
Stay Order No.53659-53663/2014 dated
21.10.2014. The appeals were listed for
final disposal on 18th December 2014.
Due to paucity of time the appeals could
not come up for hearing on 18th
December 2014. The case is now listed
for 5th March 2015.

AMENDMENT TO DEFINITION OF
INSTITUTIONAL CONSUMER IN LEGAL
METROLOGY PACKAGED COMMODITIES
RULES, 2011 VIDE NOTIFICATION DATED
6.6.2013 - CLARIFICATION BY GOVT.

The
definition
of
Institutional
Consumers, which was earlier provided
for in Explanation of Rule 3 of Legal
Metrology Packaged Commodities Rules,
2011 has been shifted to Rule
2(bc) w.e.f. 06.06.2013
with
minor
modification in the wording of the
definition. The definition of Institutional
38

53rd Annual Report

Consumer
before
amendment
06.06.2013 was given as -

the exemption to the Industrial and


Institutional consumers under Rule 3 from
the applicability of Chapter II of Packaged
Commodities Rules and particularly the
category of customers covered under the
definition of Institutional Consumer under
explanation 3(i) and the definition of
Institutional Consumer after 6.6.2013 in
definition 2(bc), the background, and the
purpose thereof before and after the
change of definition of Institution w.e.f.
6.6.2013.

of

(i)
institutional
consumer
means the institutional consumer
like Transportation, Airways,
Railways, Hotels, Hospitals or any
other service institutions who
buy packaged commodities from
the manufacturer for use by that
institution.
w.e.f.
6.6.2013
institutional
consumer is defined as institutional consumer means
any institution which hires or
avails of the facilities or service in
connection
with
transport,
hotels, hospitals or such other
service institutions which buy
packaged commodities directly
from the manufacturer for use by
that institutions.

In response to above CMA representation,


the Legal Metrology Division, Ministry of
Consumer Affairs vide its letter No.WM10(23)/2014 dated 9.5.2014 informed
CMA that the intention and meaning of
institutional consumer after inserting
Rule 2(bc) in the PC Rules vide GSR 359(E)
dated 6th June, 2013 is the same as it was
before
amendment,
under
the
explanation of Rule 3, and only it has been
shifted from Explanation Part of Rule 3 to
Definition Part of Rule 2 with more clarity
in the wordings.

In view of this change, some members


had doubts as to what exactly is covered
in the definition of institution and for
that purpose the members felt that there
is a need for seeking clarification from the
Legal Metrology Division, Department of
Consumer Affairs, Government of India.

USEFUL LIVES TO COMPUTE


DEPRECIATION COMPANIES ACT-2013
As per Schedule XIV of the Companies Act,
1956, the rate of depreciation for
Continuous Process Plant was specified as
15.33% under Written Down Value (WDV)
method and 5.28% under Straight Line
Method (SLM). This translated to about
18 years of useful life of the plant. In the
Companies Act, 2013, as per Schedule II
(Useful Lives to Compute Depreciation

Accordingly, in April, 2014 CMA made a


representation to Secretary, Deptt. Of
Consumer Affairs, Ministry of Consumer
Affairs, Government of India stating that
the Cement Industry wants to understand
from the Legal Metrology Division,
Department of Consumer Affairs as to the
purpose and the background in providing

39

dated 31st March, 2014 substituting the


following clause in Part C in para 5, in
item IV, in sub-item (i) for clause (b) of the
Schedule II of the Companies Act, 2013:

applicable to Section 123 i.e. Declaration


of Dividend) useful life for continuous
process plant for which no special rate
has been given was specified as 8 years.
Since no special rate was prescribed for
Cement Plants, being continuous process
plant, cement plants had to charge
depreciation over the period of 8 years.

(b) Continuous process


25 years
plant for Which no
Special rate has been
prescribed under (ii)
below [NESD]

This anomaly, based on the inputs


provided by the members, was brought to
the notice of Secretary, Ministry of
Corporate
Affairs,
by
CMA
vide
representation No. 181/340/2013 dated
22nd October, 2013.

With the above Notification, altering the


period of the useful life for charging
depreciation for cement plant has been
fixed at 25 years as against the 8 years
earlier provided in the Companies Act,
2013.

In response to our above representation,


CMA was invited by the Ministry of
Corporate Affairs for discussion in
February, 2014.
Accordingly, a CMA
delegation led by Dr. S. Chouksey, Vice
President, CMA called on Dr. Amandeep
Singh (IRS), P.S. to Shri Sachin Pilot, the
then Honble Minister of State for
Corporate Affairs and apprised him that
Cement & Steel industries are similar in
nature and their end usage is
complementary and depreciation as per
earlier Companies Act, 1956 was also
similar for both the Industries. However,
in the Companies Act, 2013 the life
defined for Steel & Non Ferrous Metals
are 20-25 years and 25-40 years
respectively whereas for Cement Industry
it is only 8 years.

EXCLUSION OF MANUFACTURING OF
CEMENT FROM NEGATIVE LIST OF
INDUSTRIES, PUNJAB GOVT
NOTIFICATION IN DECEMBER 2013
The Government of Punjab promulgated a
new Industrial Policy to attract new
industrial
investment
for
boosting
environment in the State. In the State
Govt. Notification dated 5th December
2013 the Fiscal Incentives for Industrial
Promotion-2013, the Punjab Govt. seems
to have inadvertently included the
Cement Industry in the list of sectors,
which shall not be eligible for incentives
available to other industries.
CMA, therefore, in its letter dated 15th
January 2014 addressed to the Honble
Chief Minister of Punjab represented that
cement manufacturing is a capitalintensive industry and also one of the
core industries whose growth and

Ministry of Corporate Affairs, Government


of India being convinced of the
genuineness of the representation of
CMA, issued Notification No. G.S.R.237(E)
40

53rd Annual Report

development is essential for the growth


of the infrastructure
sector and
consequently the growth of the economy
of the State and the Nation, as well. The
Cement Industry not only generates direct
employment but also a large-number of
downstream indirect employment as well
and is one of the industries, which has
been utilizing hazardous environmental
material such as fly ash and steel slag
in its production, thereby contributing
significantly to the maintenance of
ecological
balance
and
containing
environmental degradation. Further, the
Cement Industry is also capable of
utilizing other agricultural wastes like
husks, bagasse, etc. as possible alternate
fuel in place of fossil fuel like coal, subject
to their consistent availability. There
cannot be easy flight of Cement Industry
to other locations because of the very
nature of the process, the machinery used
and the heavy capital required to install a
unit of cement manufacture.

The Memorandum of Settlement (MOS)


dated 11.2.2011 signed between the CMA
and Cement Workers Federations and
Central Trade Unions which was valid for
a period of 4 years from 01.04.2010 to
31.03.2014.
In the months of January/February 2014
INCWF, ABCMMS, AICWF, CITU, HMS, and
LPF had sent to CMA the Notice of
Termination of the National Level
Settlement (dated 11th February, 2011
which was valid up to 31st March, 2014)
and submitted fresh Charter of Demands.
The same were circulated to Members in
April, 2014.
As was done hitherto and as advised by
President, CMA, in April, 2014 CMA sent a
communication to members requesting
them to
advise CMA clearly whether
they authorize CMA on their behalf to
negotiate
with
the
Workmen
Federations/Unions towards reaching
reasonable wage settlement along with
the name and capacity of the units for
which the authorization is being accorded
and also inform the names of the units
and their capacity to which the
authorization is not being given.
Members were requested to send their
carefully
considered
option
either
favouring or otherwise the industry-wide
negotiation/Settlement.

CMA strongly requested the authorities to


include the Cement Industry for being
allowed
incentives
under
Fiscal
Incentives for Industrial Promotion-2013
Scheme and to remove Manufacture of
Cement from the Negative list.

INDUSTRIAL RELATIONS
The Managing Committee is happy to
report that the Labour-Management
Relations
in
Member
Companies
continued to be cordial, harmonious and
healthy during the year under review.

CMA member cos. having about 67% of


their capacity authorized CMA to
negotiate with the Labour towards
reaching a settlement/understanding with

41

regard to the demands raised by the


workmen Federations/Unions.

Workmen Federations/Unions are very


high. To discuss the demands/issues
raised
by
the
Workmen
Federations/Unions and bring the same to
a moderate level for further discussion by
the Management and the Workmen
representatives
a
Working
Group
comprising of representatives from
Management
and
Workmen
Federations/Unions was constituted. The
meeting of the Working Group was held
on 30th August 2014 in New Delhi.

Three Wage Negotiation Meetings have


been held with the representatives of
Workmen Federations/Labour Unions.
On behalf of
Management S/Shri N.
Srinivasan, Past President, CMA and Vice
Chairman and Managing Director, The
India Cements Ltd., O.P. Puranmalka,
President, CMA, Dr. S. Chouksey, Vice
President, CMA and Shri Prashant Bangur,
Director, Shree Cement Ltd. participated.

The next meeting of the Management and


the representatives of the Workmen
Federations/Unions was held on 20th
October 2014 in Chennai. While the
workmen representatives wanted an
increase of above Rs.10,000/- per month
besides discussion on neutralization of DA
rate and other related issues, the
Management representatives suggested
an internal discussion amongst the
various labour representatives before
they come up with a set of reasonable
proposition.

The major issues raised by the workmen


representatives were Grant of Interim
Relief of Rs.15,000/- per month w.e.f.
1.4.2014, Coverage of Contract Labour in
MOS and implementation of the MOS to
Grinding Units also; implementation of
MOS by all the cement units who
authorized
CMA
for
Nationwide
Negotiations; Revision of Pay Scales;
Constitution of a Committee to look into
the aspect of Nomenclature for different
categories of workmen; Increase in Rate
of Dearness Allowance etc.

The negotiations are continuing.

The Managing Committee at its meeting


held on 8th August, 2014 unanimously
decided that the issue of Interim Relief
cannot be considered. The endeavour
should be to settle the negotiations as
early as possible.

DEVELOPMENT COUNCIL FOR CEMENT


INDUSTRY
The First Meeting of the reconstituted
Development Council for Cement Industry
was held on 17th October 2013 under the
Chairmanship of Shri M.A.M.R. Muthiah,
the then President, CMA and MD,
Chettinad Cement Corpn. Ltd.
The
meeting was attended by Shri Talleen
Kumar, Joint Secretary, DIPP and officials

In the meeting held on 13.8.2014 the


Management informed the workmen
representatives that as per decision of
Managing Committee sanctioning of
Interim Relief is not possible. It was also
indicated that expectations of the
42

53rd Annual Report

from concerned Ministries, apart from


representatives from NCBM and Cement
Industry.

of the Working Group on Cement Industry


by concerned Ministries/Departments.

CMA PUBLICATIONS/PERIODICALS

The Council discussed and took note of


the major concerns of the Cement
Industry particularly pertaining to (a)
Improving the growth of the Cement
Industry through promotion of Cement
Concrete Roads and White topping;
Affordable housing and Cement Concrete
Canal lining (b) Coal crises in Cement
Industry,
Steps
to improve
Coal
availability to Cement Industry (Linked
Coal/FSA, etc.) and Incentivise increased
usage of AFR (c) Backward linkages for
availability of limestone and the problems
faced by the Cement Industry regarding
limestone (d) Logistics support to Cement
Industry Rail (e) Data collection and
compilation completely stopped after
CCIs
Order of June, 2012 and (f)
implementation of the recommendations

During the year 2013-14, CMA brought


out/ updated the following publications/
periodicals:
 Cement Concrete Roads For Rural
India- A Must
 Cement, Energy and Environment
Quarterly
 Cement Journal Quarterly
 Cement News Digest Weekly

A detailed list of CMA publications


brought out in the last few years is given
in Annexure-VIII.

AUDIT
The Accounts of the Association for the
year ended 31st March 2014 have been
audited by M/s K.S. Aiyar & Co., Chartered
Accountants.

New Delhi
December 2014

(O.P. Puranmalka)
President

43

52nd Annual Session of CMA 9th January 2014

Dr. E.M. Sudarsana Natchiappan, Honble Minister of


State for Commerce and Industry inaugurating the
52nd Annual Session of CMA by lighting auspicious lamp.
To his left Mrs. Vinita Singhania, Past President, CMA
and Managing Director, J.K. Lakshmi Cement Ltd.
(R to L) Shri O.P. Puranmalka, Vice President, CMA,
Shri M.A.M.R. Muthiah, President, CMA and Shri N.A.
Viswanathan, Secretary General, CMA

Shri M.A.M.R. Muthiah, President, CMA


presenting Bouquet to Chief Guest
Dr. E.M. Sudarsana Natchiappan,
Honble Minister of State for
Commerce and Industry

Shri M.A.M.R. Muthiah, President, CMA


delivering Welcome Address

44

53rd Annual Report

Chief Guest Dr. E.M. Sudarsana Natchiappan,


Honble Minister of State for
Commerce and Industry, Govt. of India,
delivering Inaugural Address

Chief Guest, Dr. E.M. Sudarsana Natchiappan,


Honble Minister of State for Commerce and Industry
releasing CMA Publication Cement Concrete Roads
for Rural India - a Must

A view of participants at
the 52nd Annual Session

45

LIST OF ANNEXURES
ANNEXURE-I

Pan India Performance of Cement Industry

ANNEXURE-II

Chairmen/Co-Chairmen of CMA Committees

ANNEXURE-III

Month-wise Coal Receipts against FSA/Linkage

ANNEXURE-IV

Procurement and Consumption of Fuel including for


Captive Power Plants

ANNEXURE-V

Cement and Clinker Loading Railway Zone-wise

ANNEXURE-VI

List of Workshops/Seminars on Cement Concrete


Technology Participated/Sponsored by CMA

ANNEXURE-VII

List of Presentations/Meetings regarding Cement


Concrete Roads and White-Topping

ANNEXURE-VIII

List of CMA Publications/Periodicals

*****

46

53rd Annual Report

ANNEXURE-I

PAN INDIA PERFORMANCE OF CEMENT INDUSTRY


(Information collected directly and indirectly from different sources by CMA)

(Mn.t)
Year

Capacity at
the Year End

Cement
Production

VII Plan
1989-90 (Terminal Year)

61.74

45.42

Annual Plans
1990-91
1991-92

64.55
66.98

48.90
53.61

VIII Plan
1992-93
1993-94
1994-95
1995-96
1996-97

70.61
77.38
84.22
96.18
105.68

54.08
57.96
62.35
69.64
76.22

IX Plan
1997-98
1998-99
1999-00
2000-01
2001-02

110.93
116.98
120.16
133.04
146.04

83.16
87.91
100.45
100.11
106.90

X Plan
2002-03
2003-04
2004-05
2005-06
2006-07

150.48
157.05
164.70
171.10
178.89

116.35
123.50
133.57
147.81
161.64

XI Plan
2007-08
2008-09
2009-10
2010-11
2011-12

209.20
232.54
294.32
323.02
340.44

174.31
187.60
217.44
227.80
247.45

XII Plan
2012-13
2013-14

350.00 *
360.00 *

@ From website of the Office of the Economic Advisor, DIPP


* From published Articles and News Reports

47

248.23 @
255.57@

ANNEXURE-II

CHAIRMEN/CO-CHAIRMEN OF CMA COMMITTEE


CMA COMMITTEE ON COAL MATTERS
Shri Arun Daga
Sr. Vice President
(Central Procurement Cell)
UltraTech Cement Ltd

Chairman

Shri C.G. Sudarshan


General Manager (Mtls.)
The Ramco Cements Ltd
(Formerely known as Madras Cements Ltd)

Co-Chairman

CMA COMMITTEE ON RAILWAY MATTERS


Shri Rajeev Mehta
Executive President
UltraTech Cement Ltd

Chairman

Shri Sunil Agarwal


Sr. Vice President (Mktg.)
JK Lakshmi Cement Ltd

Co-Chairman

CMA FINANCE/LEGAL MATTERS COMMITTEE


Shri K.C. Birla
Sr. Executive President &
Chief Financial Officer
UltraTech Cement Ltd

Chairman

Shri Ajai Jain


Country Head - Legal & Secretarial
Lafarge India (P) Ltd

Co-Chairman

CMA TECHNICAL COMMITTEE


Shri S.K. Wali
Wholetime Director
JK Lakshmi Cement Ltd

Chairman

Shri L. Rajasekar
Executive President
(Technology & Research Cell)
UltraTech Cement Ltd

Co- Chairman

48

53rd Annual Report

CMA ENERGY TASK FORCE


(Part of Technical Committee)

Shri D. Sivagurunathan
Advisor (Technical)
The India Cements Ltd

Chairman

Shri R. Bhargava
Vice President (R&D)
Shree Cements Ltd

Co-Chairman

CMA ENVIRONMENTAL TASK FORCE


(Part of Technical Committee)

Shri L. Rajasekar
Executive President
(Technology & Research Cell)
UltraTech Cement Ltd

Chairman

Shri P.L. Subramaniam


Executive President (Operations)
The India Cements Ltd

Co-Chairman

*****

49

ANNEXURE-III

MONTH-WISE COAL RECEIPT AGAINST FSA/LINKAGE


(2009-10 to 2013-14)
(Mn.t.)
Month

2013-14

2012-13

2011-12

2010-11

2009-10

April

0.87
(1.30)

0.85
(1.36)

0.97
(1.31)

0.90
(1.18)

0.91
(1.15)

May

0.89
(1.30)

0.98
(1.36)

0.92
(1.31)

0.96
(1.18)

0.86
(1.15)

June

0.82
(1.30)

0.95
(1.36)

0.94
(1.31)

0.92
(1.18)

0.83
(1.15)

July

0.80
(1.30)

0.92
(1.37)

0.90
(1.31)

1.06
(1.18)

0.92
(1.23)

August

0.66
(1.30)

0.75
(1.37)

0.92
(1.32)

1.15
(1.18)

1.00
(1.23)

September

0.78
(1.30)

0.76
(1.37)

0.74
(1.32)

1.02
(1.18)

0.85
(1.23)

October

0.72
(1.30)

0.92
(1.37)

0.65
(1.32)

1.24
(1.28)

0.98
(1.23)

November

0.71
(1.30)

0.81
(1.37)

0.85
(1.34)

1.01
(1.28)

0.95
(1.23)

December

0.72
(1.30)

0.99
(1.37)

0.97
(1.34)

0.97
(1.28)

0.78
(1.23)

January

0.79
(1.30)

0.90
(1.37)

0.80
(1.34)

1.03
(1.30)

0.89
(1.22)

February

0.63
(1.30)

0.75
(1.37)

0.82
(1.34)

0.73
(1.30)

0.93
(1.22)

March

0.83
(1.30)

0.80
(1.37)

0.97
(1.34)

0.91
(1.30)

0.89
(1.22)

Total

9.22

10.38

10.45

11.90

10.79

(15.60)

(16.41)

(15.90)

(14.82)

(14.49)

Figures in brackets pertain to FSA Quantity/Linkage


There may be small difference in figures indicated elsewhere due to rounding off.

50

53rd Annual Report

ANNEXURE-IV

PROCUREMENT AND CONSUMPTION OF FUEL INCLUDING


FOR CAPTIVE POWER PLANTS
(1992-93 to 2013-14)
(Mn.t.)
Procurement
Receipt
against
Linkage

E-auction/
Open
Market

Imported
Coal

Lignite, Pet
Coke and
other Fuel

Total
Procurement

Actual Fuel
Consumption

VIII Plan
1992-93
1993-94
1994-95
1995-96
1996-97

10.49
10.34
10.28
10.06
10.45

1.27
0.86
2.32
2.80
2.48

0.09
0.12
0.71
1.30
1.65

0.80
0.70
0.80
0.80
0.70

12.65
12.02
14.11
14.96
15.28

12.05
12.78
13.29
14.25
15.03

IX Plan
1997-98
1998-99
1999-00
2000-01
2001-02

9.61
8.24
9.01
9.74
11.09

1.62
0.77
0.63
0.79
0.87

3.52
4.66
6.04
4.40
3.37

0.42
0.20
0.05
0.42
0.96

15.17
13.87
15.73
15.35
16.29

14.98
13.98
15.42
15.37
15.81

X Plan
2002-03
2003-04
2004-05
2005-06
2006-07

12.35
13.35
14.84
14.81
14.43

0.77
1.03
1.27
1.55
2.94

3.66
3.18
3.63
3.40
4.96

1.09
1.52
2.63
2.98
2.92

17.87
19.08
22.37
22.74
25.25

17.83
18.85
21.21
22.39
25.02

XI Plan
2007-08
2008-09
2009-10
2010-11
2011-12

14.56
14.29
10.79
11.90
10.45

5.00
6.17
4.36
4.92
4.50

6.08
6.97
6.95
8.48
9.40

3.20
2.77
4.15
3.54
5.46

28.84
30.20
26.25
28.84
29.80

27.33
29.57
25.80
28.06
28.30

XII Plan
2012-13
2013-14

10.38
9.22

3.93
3.92

9.27
9.08

6.24
7.71

29.82
29.93

27.37
28.85

Year

51

ANNEXURE-V

CEMENT/CLINKER LOADING - RAILWAY ZONE-WISE


(Mn.t.)
Zones

2013-14

2012-13

2011-12

Central

6.62

7.07

7.75

Eastern

2.48

2.39

2.49

East Central

2.61

2.44

2.21

East Coast

1.00

1.28

1.10

Northern

2.35

2.71

2.99

North Central

2.32

1.68

1.68

North Eastern

0.03

0.02

0.03

Northeast Frontier

0.33

0.06

0.12

North Western

6.75

6.47

8.09

Southern

3.22

2.83

3.98

South Central

28.62

27.63

24.71

South Eastern

8.85

8.51

7.86

14.62

13.72

14.42

South Western

0.56

0.81

0.52

Western

7.99

8.16

8.78

21.46

20.07

20.84

109.81

105.85

107.57

South East Central

West Central
Total

52

53rd Annual Report

ANNEXURE-VI

LIST OF WORKSHOPS/SEMINARS ON CEMENT CONCRETE TECHNOLOGY


PARTICIPATED/SPONSORED BY CMA
 Workshop on Construction of Cement Concrete Roads - Dos and Donts organized by Indian Concrete
Institute on 23rd September 2013 at IIT Chennai was supported by CMA by providing publications for
delegates.
 A seminar on Business Opportunities Related to Industrial Corridors in India was jointly organized by
Belgian Embassy and PHD Chamber for High Level delegation of Belgian companies and their government
representatives on 25th November 2013 in New Delhi. CMA officials attended the seminar. CMA suggested
to the President, PHD Chamber vide letter dated 25th November 2013 to request the Belgian Delegates to
strongly advocate to the Indian Government for adoption of Cement Concrete Roads in place of Bitumen
Roads, in view of the success achieved in their country in this regard.
 Two-day conference on Infrastructure and Sustainability - A Fresh Approach was held on the occasion of
Concrete Show India by UBM India Pvt. Ltd. on 13-15 March 2014 at Mumbai. Presentations were made by
the experts from India and abroad. CMA put up a stall in the exhibition in Concrete Show depicting broadly
the growth achieved by the Cement Industry and its major concerns hindering sustainable growth; its
initiatives towards Quality, Environmental Health and Safety, Corporate Social responsibility; CMAs
initiatives for encouraging adoption of Cement Concrete Roads, Advantages of Cement Concrete Roads/
White-Topping etc. More than 1000 participants visited CMA stall.
 Seminar on Concrete Roads and White-Topping was organized by Indian Concrete Institute on 24th March
2014 at Bhopal. Madhya Pradesh Public Works Department, M.P Rural Engineering Services Department and
Madhya Pradesh Rural Road Development Authority (MPRRDA) were the supporting organizations. The
seminar was supported by CMA by providing its publications to the delegates.
 Indian Concrete Institute & UltraTech Cement Ltd. organized a Technical Lecture for Engineers of Chennai
Municipal Corporation on Quality Control and Maintenance of Cement Concrete Roads on 25th July 2014
at Chennai. CMA supported the event by providing its publication White-Topping of Roads-Concrete
Overlay Technology for the participants.
****

53

ANNEXURE-VII

LIST OF PRESENTATIONS/MEETINGS REGARDING


CEMENT CONCRETE ROADS AND WHITE-TOPPING
 On behalf of Cement Industry and CMA Dr. L.R. Kadiyali, a renowned Highway Expert had an opportunity in
October 2013 to present the case for adoption of Cement Concrete Road to the Honble Minister of Road
Transport & Highways at Indian Roads Congress, New Delhi. Honble Minister was impressed and indicated
that the Ministry will favour Cement Concrete Roads.
 During the discussion at the Associations Council meeting of CII suggestions were invited as to how to bring
the economy back on rail; reduce the current deficit; improve the foreign exchange etc. CMA responded to
the President of CII, Shri Ajay S Shriram by D.O. letter dated 4th October 2013 that construction of Cement
Concrete Roads will obviate the use of petroleum crude resulting in saving of foreign exchange required to
import crude oil. CMA requested him to also take up the Recommendations of 95th Report of Department
Related Parliamentary Standing Committee (DRPSC) on Commerce and those in the Report on Working
Group on Cement Industry for the 12th Five Years plan 2012-17 for construction of Cement Concrete Roads,
with the Sr. officials of concerned Ministry/Departments in centre and states.
 During an interaction of Shri H.M. Bangur, Managing Director, Shree Cement Ltd. with Shri A.K. Sinha,
Advisor, Uttar Pradesh State Highway Authority (UPSHA) at New Delhi, Shri A.K. Sinha evinced interest in
Cement Concrete Roads in UP. To take the matter forward, CMA has arranged a Presentation on Cost
effective solutions for the Road Pavements for UP on 27th November 2013 at Lucknow.
The presentation was made by Dr. L. R. Kadiyali, a renowned Highway Expert wherein Shri Mukul Singhal,
IAS, Chief Executive Officer, UP Expressway Industrial Development Authority (UPEIDA)/ UP State Highway
Authority (UPSHA) and his team of Engineers were present. Engineers from PWD and Lucknow Development
Authority also participated in the Presentation.
 Construction of 48 Km stretches of Cement Concrete Road was sanctioned under Indo-Nepal Border Road
Project in the three district of Lakhimpur kheri, Siddharth Nagar and Maharaj Ganj in UP. On the request of
Chief-Engineer-in-Charge, Indo-Nepal Border Road Project, Public works Department, Lucknow, CMA
arranged a presentation on Design, Construction Methodology and Quality Control aspects of Cement
Concrete Roads on 21st December 2013 at Lucknow for the Engineers involved in the construction of this
Project.
Shri Binod Kumar, Scientist, CRRI, New Delhi made a detailed Presentation on the above subject on 21st
December 2013. Engineer-in-Chief and Chief-Engineer-in-Charge of the Project were highly impressed by the
presentation.

54

53rd Annual Report

 CMA organized a Meeting and Presentations for the Engineers of CCL and CMPDIL on 23rd January 2014 at
CMPDIL Ranchi.
Dr L.R. Kadiyali, Shri A.K. Jain made Presentations on Advantages & Cost Economics of Concrete Vs
Bitumen Pavements and Methodology of construction of Cement Concrete Roads/White-Topping
respectively. Shri Ram Avtar, Consultant, CMA explained the application of a software developed by Dr L.R.
Kadiyali for CMA to find design and cost comparison of Concrete and Bituminous Pavements. Sr. Engineer
from both the organizations participated in the Presentations and detailed interactive session. CMA team
also met Shri D.K. Ghose, Director Technical/ Engineering, CMPDIL, and Shri A.K. Debnath, CMD, CMPDIL and
apprised them that for Coalfield area roads on which mostly heavy axle load traffic ply Cement Concrete
Roads are most economical option. The Director & CMD of CMPDIL advised their Engineers to prepare
comparative cost analysis for their future projects to enable the organization to take decision on the option
between Bituminous and Concrete Pavements.
 CMA organized a meeting and Presentation for the Civil Engineers/Staff Officers (Civil) of WCL on 20th March
2014 at Nagpur. Dr L. R. Kadiyali & Shri A.K. Jain made Presentations on Advantage & Cost Economics of
Concrete vs Bitumen Pavements and Methodology of construction of Cement Concrete Roads/ WhiteTopping respectively. Shri Lalit Kumar Jain, Consulting Structural Engineer also made a presentation about
the ongoing projects on Cement Concrete Roads in Nagpur region. He discussed the problems encountered
due to black cotton soil prevalent in the region and the solutions to overcome this problem. Civil Engineers/
staff officers actively participated in the presentation and detailed interactive session.

*****

55

ANNEXURE-VIII

LIST OF CMA PUBLICATIONS/PERIODICALS


Periodicals







Cement, Energy and Environment Quarterly Journal


Cement Journal Quarterly
Cement News Digest Weekly
CMA Directory (Annual)
Indian Cement Industry Statistics (Annual)
Stopped publishing after Competition
Commission of Indias Order of 2012
Basic Data on Indian Cement Industry (Annual)

Cement Concrete Roads















Cement Concrete Roads For Rural India- A Must (Dec.2013)


165 km Yamuna Expressway in Cement Concrete through PPP Mode in Uttar Pradesh (Nov.2012)
White-Topping of RoadsConcrete Overlay Technology (Nov. 2011)
Cement Concrete Road Construction - DOs and DONTs (May.2011)
City Concrete Roads . (Modified and Enlarged) (Jun.2010)
Cement Concrete Roads A Long Lasting Gift to Nation (Jun.2010)
Handbook on Cement Concrete Roads (Mar.2010)
Four Laning of Satara-Kolhapur-Kagal, NH4 (Revised and Updated) (Mar.2007)
Cement Concrete Pavements for City Roads, Bus Stands & Depots (Mar.2003)
India's First Access Controlled Expressway - Mumbai-Pune (Oct.2001)
Handbook of Ready Mixed Concrete (Jul.2001)
Fuel Savings on Cement Concrete Pavements (2000)

Buildings
 Construction, Maintenance and Upkeep of Concrete Buildings (Oct.2009)
 Building Lasting Homes (Oct.2008)
 Cement in Service of The Nation (Jan.2006)
Canal Lining
 Cement Concrete Canal Lining (Feb.2009)
 Handbook on Cement Concrete Canal Lining (Jun.1998)
Consumer Guide
 Cement for Construction A Consumer Guide (Jan.2008)
(In Different Languages English, Hindi, Tamil, Telugu, Malayalam,
Bengali, Marathi, Kannada, Punjabi and Gujarati)
*****

56

53rd Annual Report

MEMBER COMPANIES OF CEMENT MANUFACTURERS ASSOCIATION


1.

2.

3.

4.

Anjani Portland Cement Ltd


Anjani Cement Centre
Plot No. 7 & 8
D.No.8-2-248/1/7, Nagarjuna Hills
Main Road, Punjagutta
Hyderabad - 500 082 (A.P.)

Gujarat Sidhee Cement Ltd


Siddhigram - 362 276
Off. Veraval Kodinar Highway
Taluka Veraval, Distt. Junagarh,
Gujarat

11.

Heidelberg Cement India Ltd


9th Floor, Tower-C, Infinity Towers,
DLF Cyber City, Phase-II
Gurgaon, Haryana 122002

12.

The India Cements Ltd


Dhun Building
827, Anna Salai,
Chennai - 600 002

13.

J.K. Cement Ltd


Kamla Tower
Kanpur - 208 001
Uttar Pradesh

14.

Jaiprakash Associates Ltd


(Cement Division)
Sector 128, Noida 201 304, (U.P.)

15.

Jammu & Kashmir Cements Ltd


(A Govt. of J&K Undertaking)
Nawa-I-Subh Complex,
Zero Bridge, P.Box No. 149
Srinagar - 190 001

16.

JK Lakshmi Cement Ltd


Jaykaypuram 307 019
Distt. Sirohi,
Rajasthan

17.

The K.C.P. Ltd


Ramakrishna Buildings
2, Dr. P.V. Cherian Crescent
Egmore, Chennai - 600 008

18.

Kalyanpur Cements Ltd


2 & 3, Dr. Rajendra Prasad Sarani
Kolkata - 700 001

19.

Kesoram Industries Ltd


Kesoram Cement
Vasavadatta Cement
9/1, R.N. Mukherjee Road,
Kolkata - 700 001

20.

Khyber Industries (P) Ltd


Khayam Road, Nowpora,
Srinagar - 190 001
Jammu & Kashmir

Bagalkot Cement & Inds.Ltd


Stadium House, Block No 1, 6th floor,
Veer Nariman Road, Churchgate.
Mumbai - 400 020
Binani Cement Ltd
601, Axis Mall, 6th Floor, Block C,
Plot No.CF9, Action Area 1
New Town, Rajarhat
Kolkata - 700 156
Birla Corporation Ltd
(Cement Division)
Birla Building
9/1, R.N. Mukherjee Road,
Kolkata - 700 001

5.

Cement Corporation of India Ltd


(A Govt. of India Enterprise)
Scope Complex, Core No. 5
7, Lodhi Road,
New Delhi - 110 003

6.

Cement Manufacturing Co.Ltd


Village Lumshnong, P.S. Khliehriat
Distt. Jaintia Hills,
Meghalaya 793 200

7.

10.

Century Textiles & Industries Ltd


Century Cement
Maihar Cement
Manikgarh Cement
Century Bhawan
Dr. Annie Besant Road,
Mumbai - 400 025

8.

Chettinad Cement Corporation Ltd


Rani Seethai Hall Building
Post Box No.748,
603, Anna Salai,
Chennai - 600 006

9.

Dalmia Cement (Bharat) Ltd


Dalmiapuram - 621 651
Distt. Tiruchirapalli,
Tamil Nadu

57

21.

22.

23.

24.

25.

26.

27.

Lafarge India Pvt. Ltd


Crescenzo Building,
B-Wing, 10th Floor,
C-38 & C-39, G Block,
Bandra Kurla Complex,
Bandra (East),
Mumbai- 400 051

32.

Rain Cement Ltd


(Formerly Rain Commodities Ltd)
Rain Centre, 34, Srinagar Colony,
Hyderabad 500 073 (A.P.)

33.

The Ramco Cements Limited


(Formerly Madras Cements Ltd)
Ramamandiram, Virudhunagar Distt.
Rajapalaiyam - 626 117,
Tamil Nadu

34.

Reliance Cement Company Pvt. Ltd.,


H. Block, 1st Floor,
Dhirubhai Ambani Knowledge City,
Navi Mumbai 400 710.

35.

Mawmluh-Cherra Cements Ltd


(A Govt. of Meghalaya Undertaking)
Taxation Building, (Near Raj Bhawan)
Shillong - 793 001,
Meghalaya

Sanghi Inds.Ltd
Sanghinagar501 511
R.R.Dist.,
Andhra Pradesh.

36.

Meghalaya Cement Ltd


Village Thangskari, P.O. Lumshnong,
Distt. Jaintia Hills,
Meghalaya - 793 200

Saurashtra Cement Ltd


Near Railway Station,
P.O. Ranavav - 360 560,
Gujarat

37.

My Home Industries Ltd


9th Floor, Block-3,
My Home Hub, Madhapur,
Hyderabad - 500 081

Shree Cement Ltd


Bangur Nagar, Post Box No.33,
Beawar - 305 901
(Rajasthan)

38.

OCL India Ltd


Rajgangpur - 770 017
Distt. Sundergarh,
Odisha

Shree Digvijay Cement Co.Ltd


(A Votorantim Group Company)
P.O. Digvijaygram 361 140
Via Jamnagar, (Gujarat)

39.

Shriram Cement Works


(A unit of DCM Shriram Ltd.)
6th Floor, Kanchenjunga Building,
18, Barakhamba Road,
New Delhi - 110 001

40.

Tamil Nadu Cements Corp. Ltd


(A Govt. of Tamil Nadu Undertaking)
LLA Building, 2nd Floor,
735, Anna Salai,
Chennai - 600 002

41.

UltraTech Cement Ltd


B Wing, Ahura Centre,
2nd Floor, Mahakali Caves Road
Andheri (E), Mumbai - 400 093

42.

Zuari Cement Ltd


(Italcementi Group)
Krishna Nagar, Yerraguntla - 516 311
Kadapa Distt,
Andhra Pradesh

Malabar Cements Ltd


(A Govt. of Kerala Undertaking)
Walayar P.O.,
Palakkad Distt. - 678 624, Kerala
Mangalam Cement Ltd
Adityanagar, Morak - 326 520
Distt. Kota
(Rajasthan)

28.

Orient Cement Ltd


(Prop: Orient Paper & Inds. Ltd)
Bhubaneswar 751 012,
Odisha

29.

Panyam Cements & Mineral Inds Ltd


C-1, Industrial Estate,
Bommalasatram, Nandyal,
Kurnool Distt.,
Andhra Pradesh - 518 502

30.

Penna Cement Inds.Ltd


Plot No.703, Sriniketan Colony,
Road No.3, Banjara Hills,
Hyderabad - 500 034

31.

Prism Cement Ltd


305, Laxmi Nivas Apartments
Ameerpet,
Hyderabad - 500 016 (A.P.)

58

CEMENT MANUFACTURERS' ASSOCIATION

SECRETARIAT
Secretary General

Shri N.A. Viswanathan

Acting Secretary

Shri S.K. Dalmia

Joint Secretary

Shri S.V. Joshi


Shri N.K. Pande
Shri Jainender Kumar
Shri H.K. Panchal
Shri Rakesh Gupta

Sr. Dy. Secretary

EDP Manager

Shri Piyuesh Aggarwal

Sr. Assistant Secretary

Shri N.Y.R. Sampath Kumar

Assistant Secretary

Shri N.S. Pawar


Shri C.S. Pant

Technical Officer

Shri K.K. Roy Chowdhury

AUDITORS
Messrs K.S. Aiyar & Co.
Chartered Accountants

CEMENT MANUFACTURERS ASSOCIATION


(Website : www.cmaindia.org)

Corporate Office
CMA Tower, A-2E, Sector 24, Noida -201 301 (U.P.)
Tel: 0120-2411955, 2411957, 2411958, 2411764, Fax: 0120-2411956
Email: cmand@cmaindia.org

Mumbai Office
Express Building, 1st Floor, Indian Merchants Chamber Marg, Churchgate, Mumbai - 400 020
Tel: 022 -22049691, 22851304, Fax: 022 -22040582
Email: cmabb@cmaindia.org, cmabb@bom3.vsnl.net.in

Hyderabad Office
3rd Floor, 36th Square, Plot No.481, Road No.36, Jubilee Hills, Hyderabad 0- 500 034.
Tel: 040-23553378
Email: cmahyd@cmaindia.org
Registered Office
Vishnu Kiran Chamber, 2142-47, Gurudwara Road, Karol Bagh, New Delhi 110 005
Tel: 011- 28753206, 28751307, Fax: 011-28758476

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